Chapter 15: Deliver Value

Front 1

Supply Chain

Back 1

All the activities necessary to turn raw materials into a good or service and put it in the hands of the consumer or business customer.

Front 2

Supply Chain Management

Back 2

The management of flows among firms in the supply chain to maximize total profitability.

Front 3

Insourcing

Back 3

A practice in which a company contracts with a specialist firm to handle all or part of its supply chain operations.

Front 4

Channel of Distribution

Back 4

The series of firms or individuals that facilitates the movement of a product from the producer to the final customer.

Front 5

Channel Intermediaries

Back 5

Firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user.

Front 6

Breaking Bulk

Back 6

Dividing larger quantities of goods into smaller lots in order to meet the needs of buyers.

Front 7

Creating Assortments

Back 7

Providing a variety of products in one location to meet the needs of buyers.

Front 8

Facilitating Functions

Back 8

Functions of channel intermediaries that make the purchase process easier for customers and manufacturers.

Front 9

Disintermediation

Back 9

The elimination of some layers of the channel of distribution in order to cut costs and improve the efficiency of the channel.

Front 10

Knowledge Management

Back 10

A comprehensive approach to collecting, organizing, storing, and retrieving a firm's information assets.

Front 11

Online Distribution Piracy

Back 11

The theft and unauthorized re purposing of intellectual property via the Internet.

Front 12

Wholesale Intermediaries

Back 12

Firms that handle the flow of products from the manufacturer to the retailer or business user.

Front 13

Independent Intermediaries

Back 13

Channel intermediaries that are not controlled by any manufacturer but instead do business with many different manufacturers and many different customers.

Front 14

Merchant Wholesalers

Back 14

Intermediaries that buy goods from manufacturers and sell to retailers and other business-to-business customers.

Front 15

Take Title

Back 15

To accept legal ownership of a product and assume the accompanying rights and responsibilities of ownership.

Front 16

Merchandise Agents or Brokers

Back 16

Channel intermediaries that provide services in exchange for commissions but never take title to the product.

Front 17

Channel Levels

Back 17

The number of distinct categories of intermediaries that populate a channel of distribution.

Front 18

Hybrid Marketing System

Back 18

A marketing system that uses a number of different channels and communication methods to serve a target market.

Front 19

Slotting Allowance

Back 19

A fee paid in exchange for agreeing to place a manufacturer's products on a retailer's valuable shelf space.

Front 20

Conventional Marketing System

Back 20

A multiple-level distribution channel in which channel members work independently of one another.

Front 21

Vertical Marketing System (VMS)

Back 21

A channel of distribution in which there is formal cooperation among members at the manufacturing, wholesaling, and retailing levels.

Front 22

Horizontal Marketing System

Back 22

An arrangement within a channel of distribution in which two or more firms at the same channel level work together for a common purpose.

Front 23

Intensive Distribution

Back 23

Selling a product through all suitable wholesalers or retailers that are willing to stock and sell the product.

Front 24

Exclusive Distribution

Back 24

Selling a product only through a single outlet in a particular region.

Front 25

Selective Distribution

Back 25

Distribution using fewer outlets than intensive distribution but more than exclusive distribution.

Front 26

Channel Leader

Back 26

A firm at one level of distribution that takes a leadership role, establishing operating norms and processes based on its power relative to other channel members.

Front 27

Logistics

Back 27

The process of designing, managing, and improving the movement of products through the supply chain. Logistics includes purchasing, manufacturing, storage, and transport.

Front 28

Physical Distribution

Back 28

The activities that move finished goods from manufacturers to final customers, including order processing, warehousing, materials handling, transportation, and inventory control.

Front 29

Order Processing

Back 29

The series of activities that occurs between the time an order comes into the organization and the time a product goes out the door.

Front 30

Enterprise Resource Planning (ERP) Systems

Back 30

A software system that integrates information from across the entire company, including finance, order fulfillment, manufacturing, and transportation and then facilitates sharing of the data throughout the firm.

Front 31

Warehousing

Back 31

Storing goods in anticipation of sale or transfer to another member of the channel of distribution.

Front 32

Materials Handling

Back 32

The moving of products into, within, and out of warehouses.

Front 33

Transportation

Back 33

The mode by which products move among channel members.

Front 34

Inventory Control

Back 34

Activities to ensure that goods are always available to meet customers' demands.

Front 35

Radio Frequency Identification (RFID)

Back 35

Product tags with tiny chips containing information about the item's content, origin, and destination.

Front 36

Just In Time (JIT)

Back 36

Inventory management and purchasing processes that manufactures and re-sellers use to reduce inventory to very low levels and ensure that deliveries from suppliers arrive only when needed.

Front 37

Perfect Order Measurement

Back 37

A supply chain metric that tracks multiple steps in getting a product from a manufacturer to a customer.