/
Chapter  15 Global Distribution and Logistics Chapter  15 Global Distribution and Logistics

Chapter 15 Global Distribution and Logistics - PowerPoint Presentation

karlyn-bohler
karlyn-bohler . @karlyn-bohler
Follow
440 views
Uploaded On 2018-11-10

Chapter 15 Global Distribution and Logistics - PPT Presentation

Introduction Channels of distribution connect producers and customers Links are and entities that perform a number of functions Producers rely on ID: 725881

channel international management logistics international channel logistics management issues design transportation distribution inventory storage security gray systems commerce products

Share:

Link:

Embed:

Download Presentation from below link

Download Presentation The PPT/PDF document "Chapter 15 Global Distribution and Logi..." is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.


Presentation Transcript

Slide1

Chapter

15

Global Distribution and LogisticsSlide2

Introduction

Channels of

distribution connect

producers and customers

Links are

___________ and __________ entities

that perform a number of

functions

Producers

rely

on

_________

to facilitate the location of companies interested in distributing productsSlide3

Channel Structure

Channels can vary from direct, producer-to-consumer types to elaborate, multilevel channels

Channel

systems

Slide4

Channel Structure

Techniques employed by businesses

Creating new bridges between producers and customers

Creating new forms of B2B commerce

Focusing on peer-to-peer (P2P)

Slide5

Channel Structure

Connections made by marketing institutions

serve

Flows are usually

multidirectional—vertical and horizontalSlide6

Channel Design

Length

and width of the channel

employed

Determined

by factors that can be summarized as the 11

Cs

Uses

the 11 Cs as a checklist to determine the proper

approachSlide7

11 C’s

External

Customer

Competition

Internal

Company objectives

Capital

Coverage

ContinuitySlide8

Channel Design

Customers

Basis

for channel-design

decisions

Focusing

on customer needs by

understanding:

Slide9

Channel Design

Culture

Distribution culture:

Slide10

Channel Design

Competition

Channels used by competitors may be the only product distribution system that is accepted by both the trade and consumers

An international marketer’s task is

to

Slide11

Channel Design

Company objectives

Character

Products

may be distributed in a number of ways even to the same target audience

Slide12

Channel Design

Capital

Marketer’s financial strength

determines

Stronger the marketer’s finances, the more able the firm is to establish channels it either owns or controlsSlide13

Channel Design

Cost

Varies

over the life cycle of the relationship as well as

_______________________

Incurred

in

protecting the company’s distributors against adverse market

conditionsSlide14

Channel Design

Coverage

Area

to be covered depends on the:

Companies typically enter a market with one local distributor

Slide15

Channel Design

Control

Slide16

Channel Design

Continuity

Rests heavily on the

marketer

Slide17

Channel Design

Communication

Is a two-way process that does not permit the marketer to dictate to

intermediaries

Assists

the international

marketer in:

Slide18

Channel Management

Types of intermediaries

Distributor

:

Agent

: Operates on a commission basis

Slide19

Channel Management

Government agencies

The U.S. Department of Commerce has various services that can assist firms in identifying suitable representatives abroad

Slide20

Channel Management

Private sources

Advertising

Websites

Email solicitations

Slide21

Channel Management

The distributor agreement

Important

terms to be included in the

agreement

Contract duration

Method of

payment

Facilitating payments

:

Products and conditions of

sale

Slide22

Channel Management

Gray markets

(

______________

)

Products vary from inexpensive consumer goods to expensive capital goods

Conditions that allow unauthorized resellers to

exist

Slide23

Channel Management

Arguments for gray markets:

Slide24

Channel Management

Arguments against gray markets:

Slide25

Channel Management

Gray markets

Gray-market goods can:

Strategies to eliminate gray markets:

Slide26

Channel Management

Termination of channel relationship

Reasons

Slide27

Channel Management

Termination of channel relationship

Just

causes

Time to think about such issues is before the overseas distribution agreement is signed

Careful preparation can allow the exporter to negotiate a termination without litigationSlide28

E-Commerce

M-commerce

:

The marketer has to be sensitive to the governmental role in

e-commerce

The

company itself must be prepared to provide 24-hour order taking and customer

serviceSlide29

International Logistics

Design and management of a system that controls the

inflow outflow of materials in an international corporation

The

systems approach helps the firm explicitly recognize the linkages

among separate

logistics

componentsSlide30

International Logistics

Interaction with outside organizations, suppliers, and customers helps integrate all

partners

Systems

approach also

ensures:

JIT -

EDI -

ESI -

ECR -

Slide31

International Logistics

Two phases in the movement of materials

Materials

management

:

Physical distribution

: Slide32

International Logistics

Concepts

within

logistics

Systems

concept

:

Total

cost

concept:

Trade-off

concept: Slide33

International Logistics

Supply

chain management

Advances in information technology have been crucial to progress in supply chain management Slide34

International Logistics

The Impact of International Logistics

Logistics

costs have risen over the

years

Close

collaboration with suppliers and customersSlide35

International Logistics

New

dimensions of international logistics

Domestic operations

Logistics

decisions are

guided by:

International

operations

Slide36

International Transportation Issues

Transportation infrastructure

Firms encounter infrastructural

variations

Mistakes

in the

_____________________

increase

costsSlide37

International Transportation Issues

Availability of modes - Ocean shipping

Types

of

vessels

Common vessels

Slide38

International Transportation Issues

Availability

of modes - Air shipping

High-value items are mostly shipped by air, particularly if they have a high density

Volume of airfreight can be increased by

Slide39

International Transportation Issues

Choice of transport

modes

Transit time

Slide40

International Transportation Issues

Predictability

Higher predictability of airfreight allows lower levels of inventory safety stock

Merchandise shipped via air is likely to suffer less loss and damageSlide41

International Transportation Issues

Cost

Noneconomic factors

Slide42

The International Shipment

Documentation

Sometimes

considered to be a trade

barrier

__________ is

the most important document

Shipper’s

declaration for

____________

Assistance with

international shipments

Several intermediaries provide services in the physical movement of goods

Slide43

International Inventory Issues

Inventory

carrying costs

:

Order

cycle

time

In

international marketing, the order cycle is frequently longer than in domestic

businessSlide44

International Inventory Issues

Customer

service levels

Responsiveness

that inventory policies permit for any given situation

Should be based on:

Slide45

International Inventory Issues

Inventory

as a strategic

tool

Dealing

with currency valuation

changes

Hedging

against inflationSlide46

International Storage Issues

Storage facilities

Factors determining the location of storage facilities

Slide47

International Storage Issues

Storage facilities

ABC analysis classifies products that are most sensitive to delivery time

Slide48

International Storage Issues

Outsourcing

Reasons for outsourcing

Slide49

International Storage Issues

Foreign

trade zones

Considered for

Found at:

Benefits both the

Generates employment opportunitiesSlide50

International Packaging Issues

Adequate

for domestic shipping may be inadequate for international

transportation

Weight

of packaging must be

considered

Slide51

Management of International Logistics

Centralized logistics

management

Decentralized logistics management

Slide52

Management of International Logistics

Contract logistics

Outsourcing logistical management by employing outside logistical expertise

Allows marketers to take advantage of an existing network, complete with resources and experience

Slide53

Logistics and Security

Logistics systems are vulnerable to terrorist attacks and piracy

To prevent them, governments impose security measures

Slide54

Logistics and Security

Security

measures:

Slide55

Logistics and Security

Strategies employed for reducing security

costs

Slide56

Recycling and Reverse Logistics

Reverse

distribution

systems

Environmental

concerns are also growing in the packaging fieldSlide57

Recycling and Reverse Logistics

ISO 14000

Firms should concentrate on providing the society with a better quality of life