Idis 240 Exam 1

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OEM

Back 1

Original Equipment Manufacturer - buys the product and "rebrands" to sell as their own with warranty

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MRO

Back 2

Maintenance Repair Operation - people who fix something with a problem

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Contractor

Back 3

Person who provides supplies or service under contract

Use items in the process of building something else

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Breaking bulk

Back 4

Shipping something in individual components

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3PL

Back 5

3rd Party Logistics Provider - specializes in warehousing and transportation services that customize to customers based on market conditions

Third Party Logistics provider: a firm that provides service to its customers of outsourced (or "third party") logistics services for part, or all of their supply chain management functions.

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RFID -

Back 6

Radio Frequency Identification Tags

Use of LPNs and RIFD tags to process orders more efficiently

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What is supply chain management?

Back 7

A management system that coordinates and integrates all the activities performed by supply chain members into a seamless process, from the source to the point of consumption, resulting in enhanced customer and economic value. 

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Why is a supply chain need

Back 8

-inadequate finances for certain functions -product assortment -"contact efficiency"

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What are the 5 specific service outputs?

Back 9

-selling the product

-inventory on hand

-credit extending for customers

-transportation to customer's location

-servicing such as assembling product

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Why do distributors have channel power? (3)

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-they can economically provide the services needed to get the product to the consumer

-they can anticipate future trends and future changes

-servicing and providing aftermarket support

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What are the trends benefitting distributors? (4)

Back 11

-information of trends is becoming more valuable-

IT inventory always needs to be ready

-mass customization of products

-reduction of vendors

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What are the types of distribution? (3)

Back 12

Exclusive - one Maserati dealer-

Selective - few Rolex dealers-

Intensive - many Coca-Cola dealers

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What is one of the most costliest functions of supply chain?

Back 13

Increase amount of inventory

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What's a Buy-out?

Back 14

•Required when merchandise ordered by customer not available in inventory

•Normally buy-outs are done from the local competitor to satisfy customer orders

•Better forecasting will lead to less instances of buy-outs

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3 Types of sales?

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Counter sales

Inside Sales

Outside Sales

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Outside Sales

Back 16

•Representative should be a specialist in the customer’s business area

•Meets the customer in person at the customers’ business place

•Should have sufficient product knowledge, should be able to advise customers and recommend product and services that will help the customer by reducing their operating costs, saving money and solving problems

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Inside Sales

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•No face to face interaction with customer makes it more difficult as the representative cannot see the product or the facial responses or cues of the customer

•Must be able to analyze and respond quickly

•Should have good problem solving skills

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Order filling

Back 18

Takes place directly after order printed and scheduled to be shipped

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Typical service outputs of an Industrial Distributor

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performs a variety of marketing channel functions, including selling, stocking, delivering a full product assortment, and financing

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Design win

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Product channel members who help a product become specified into an application

The phrase used to describe a product that is incorporated into another company's sales model.

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When is a sale complete?

Back 21

when the item has been successfully purchased AND used

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What is an agent

Back 22

Manufacturers' agents or representatives are independent contractors who work on commission to sell products for more than one manufacturer.

They are not under the immediate supervision of the manufacturers—typically called principals—that they sell for, so their relationship generally falls into client-customer patterns.

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Breaking Bulk

Back 23

refers to the process of reducing large product shipments into small ones that are more suitable for individual retailers or companies

IN OTHER WORDS: selling products in smaller quantities than allowed by manufacturer.

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Assortment

Back 24

Bundling products and services

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Wait time

Back 25

how long you (the customer) is willing to wait for a product

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Who benefits most from extending credit?

Back 26

the contractor

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creating markets

Back 27

advertise, End User and Specifier calls

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Specifier (a)

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Technical expert, engineer, or IT specialist who develops the specifications for the features and functions needed.

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Specifier (b)

Back 29

Within the industrial market, a Specifier is a designer, engineer or production worker who determines the types of material to be used in a particular project, especially for a project that is put into bid proposals and job contract. The specifier may be referred to as the Organization Specifier.

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Field Application Engineer

Back 30

common title for someone who represents a manufacturer

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Non-factory Owned Distributor

(Imp)

Back 31

Full service with all functions of a distributorMore independent than manufacturer

better tailoring of product

mix even if exclusive can give good representation to new products less biased

PROVIDES BETTER ADVICE

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Modifiers

Back 32

modifiers look up and do research can include architects,engineers, & designers

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Order filling

Back 33

Takes place directly after order printed and scheduled to be shipped

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Define "product-based"

Back 34

-Product-based

- buy off what will make a profit; old-fashioned

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"customer-based" purchasing.

Back 35

Customer-based - buy based off what the customer needs

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Define receiving.

Back 36

Must avoid error and be done in a timely manner

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Define "counter-sales", "inside sales", and "outside sales."

Back 37

-Counter-sales - interaction with a counter and display-Inside-sales

- no face to face interaction; difficult to sell

-Outside-sales

- going to the customers place of business

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Define "buy-out."

Back 38

When a distributor sells out of something, they must go to a local dealer and buy it and sell for a loss in order to keep future business

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What are responsibilities of the manufacturer? (3)

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-producing quality products

-creating markets

-understand and protect the industrial channel

-Maintaining consistent lead-times

-Creating markets

-Printed or electronic catalogs

-Provide technical information and training

-Protect the channel (Design Wins)

-Understand value and compensate channel partner

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What are the responsibilities of a sales representative? (2)

Back 40

-sale in a certain area of assignment

-skills of knowledge, negotiation, etc.

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What is an agent?`

Back 41

a sales representative that will represent multiple companies-usually do not store inventory

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What are the differences in 1) "factory-owned distributorship" and 2) "non-factory-owned distributorship?"

Back 42

1) -started because of a lack of other channels-best way to get representation-must sell other products to be of full service

2) -more independent than manufacturer-full service with all the functions of a distributor

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What is an end user?

Back 43

Does not resell the product in the present form

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Required Services fall into at least 1 of what 3 components of Distribution?

Imp

Back 44

Knowledge

-Logistics

-Financing

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Knowledge

Back 45

-Product Knowledge

-Product Application

-Vendor Knowledge

-Customer Knowledge

-Financing Knowledge

-Logistical Knowledge

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Financing

Back 46

Traditional Lending

-Consignment

-Extending Credit

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Logistics

Back 47

Wait time

-Delivery time

-Local delivery

-Reverse Logistics

-Breaking bulk

-Packaging

-Assortment

-Local Access

-Purchase time

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Channel Design

Back 48

Manufacturer---------------------->Consumer

Manufacturer----->Retailer--------->Consumer

Manufacturer-->Wholesaler-->Retailer-->Consumer

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Industrial Channel Design

Back 49

Manufacturer------------------------>End User

Manufacturer----->Distributor---->End User

Manufacturer-->Master Distributor-->Distributor-->End User

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Required Services fall in to at least one of what 3 components of customer value?

Back 50

-Form

-Place

-Time

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What is customer service?

Back 51

The greater the difference between the service outputs of the manufacturer and the requirements of the consumer, the more likely intermediaries will be used.

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Product Based Purchasing

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-Buy what can be sold at profit

-Distributor decides what to buy, sales team figures out to whom it can be sold at a profit

-A little "Old School" but still exists in many channels

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Customer Based Purchasing

Back 53

-Distributor decides to buy based on the requirements of the customers they are serving

-Tries to provide products at desired service level and most economical cost

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Inside the Distributor

Back 54

-Purchasing

-Receiving

-Sales

-Order Filling

-Buy-outs

-Packing

-Shipping

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Packing

Back 55

After the sales order is picked, merchandise is packed in boxes or cartons so that it can be shipped to the customer

care to avoid damaging during shipping

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Shipping

Back 56

-freight lines for out of town customers

-Delivery department for local customers

-"will call" locations where customer can pick them up

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What are the manufacturer's motivations?

Imp

Back 57

Product design and production

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wholesaler

Back 58

A type of business that buys goods in large amounts and resells them to other businesses in smaller lots, or retailers.

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distributor

Back 59

A business that does not manufacture its own products, but purchases and resells these products. Such a business usually maintains a finished goods inventory, usually a wholesaler.

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"buying direct"

Back 60

Procuring goods or services straight from the manufacturer or supplier, and by-passing all intermediaries such as distributors, wholesalers, and retailers.

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consumer channel design

Back 61

manufacturer->wholesaler->retailer->consumer

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industrial channel design

Back 62

manufacturer->master distributor->distributor->end user

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consignment

Back 63

selling it for me for a % of the profit

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logistics

Back 64

Breaking Bulk, Packaging, Assortment, Local Access, Purchase Time, Wait Time, Delivery Time, Local Delivery, Reverse Logistics

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financing

Back 65

traditional lending, consignment, extending credit

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up-stream

Back 66

part of production process involves searching for and extracting raw materials.

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down-stream

Back 67

part of production process involves processing the materials collected during the upstream stage into a finished product.

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packaging-logisitics

Back 68

ensuring order for correctness & proper packaging for shipment or delivery

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purchase time-logisitics

Back 69

when the customer wants to place the order

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reverse logistics

Back 70

A complete supply chain dedicated to the reverse flow of products and materials for the purpose of returns, repair, remanufacture, and/or recycling.

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contact efficiency

Back 71

the efficiency gained in terms of a reduction in the number of contacts required through the use of channel intermediaries

ex. the graph that uses distributors to get products from manufacturer to retailer or end user

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customer value

Back 72

the relationship between benefits and the sacrifice necessary to obtain those benefits

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5 basic functions of a distributor

Back 73

selling, inventory, credit, transportation, servicing

Front 74

New business models allow for what in manufacturer & distributor relations?

Back 74

mutual benefit

Front 75

successful distributors reduce cost by..

Back 75

understanding the needs of the manufacturer and becoming a true partner

Front 76

the future of distribution

Back 76

continued channel consolidation and implementation

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receiving

Back 77

first & important step in distributor operations, must be done accurately & efficiently

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PAID

Back 78

the professional association FOR industrial distribution

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who benefits most from credit?

Back 79

the customer, credit usually comes at a cost to the wholesaler or distributor due to higher investment costs etc.

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service outputs of a typical distributorship

Imp

Back 80

selling, inventory, credit, transportation, servicing

Front 81

specifies product in the industrial channel

Back 81

architects, engineers, designers

Front 82

Ryerson

Back 82

processes & distributes metals, serves the aerospace, defense, oil & gas, semi-conductors, heavy equipment, and transportation speaker-Alan singleton

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Tom's mechanical

Back 83

air conditioning, heating, ductwork, & HVAC installation and repair services in Dallas, Fort Worth, and Arlington, TXspeaker-Rich Ashton

Front 84

RDO equipment

Back 84

sells and services John Deere, Vermeer, Topcon and other heavy equipment brands for agriculture, construction, lawn and gardenspeakers-Daryl Shelton & Amanda Johnson

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Sewell Automotive Companies

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Cadillac, Lexus, Audi, Infiniti, Buick, GMC, MINI, Subaru, Maserati dealer in Dallas, Fort Worth, Plano, Grapevine, San Antoniospeaker

-Joe Stallard

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Career Center

Back 86

resume review & tipsspeaker-Bob Foley

Front 87

Money Wise Aggie

Back 87

tips on to save money & spend wisely, info about loans, large purchases, etc.

Front 88

Why distributors have channel power

Back 88

knowledge

Front 89

service offering

Back 89

funding mechanism, employee management system, customer management system

Front 90

form, place, time

Back 90

required services for customer value

Front 91

OEM, MRO/facilities, contractor

Back 91

ender users of industrial products don't resell in present form

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financing for distribution

Back 92

traditional lending, consignment, extending credit

Front 93

levels of distributions (top going to bottom)

Back 93

exclusive, selective, intensive

Front 94

logistics

Back 94

breaking bulk, packaging, assortment, wait time, purchase time

Front 95

contact efficiency

Back 95

easier and more cost efficient to go through intermediary

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sale

Back 96

completed when item is purchased and used

Front 97

service outputs

(Imp)

Back 97

selling, inventory, credit, transportation, servicing

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receiving

Back 98

accountability for materials received in a timely and accurate manner

Front 99

types of shipping

Back 99

freight lines, delivery department, will call

Front 100

manufacturer motivations

(Imp)

Back 100

product design, production

Front 101

manufacturers sales rep

Back 101

responsible for sales in a given territory, understand relationships and product, many different titles (acct manager, sales engineer, outside sales rep, etc)

Front 102

what does a 3PL provide?

Back 102

Transportation, warehousing, providing information like tracking, complete logistic function, global shipping. They basically solve other companies problems.

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Other members of 3PL

Back 103

banks, integrators, architects, engineers, designers, modifiers

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Book 1

Back 104

The distributors role in the supply chain by Dr. Don A Rice and Mitch Harper

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book 2

Back 105

Financial transactions and the wholesale distributor by Dr. Don A Rice and Jay Johnson

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how to distributors expand their market places?

Back 106

distribute outside their geographic area

Front 107

successful distributors reduce cost by..

Back 107

understanding the needs of the manufacturer and becoming a true partner

Front 108

the future of distribution

Back 108

continued channel consolidation and implementation

Front 109

What fields specify products in the industrial channel?

Back 109

ID

Front 110

Johnson control

Back 110

Johnson Controls, Inc. is a multinational conglomerate producing automotive parts such as batteries and HVAC equipment, to optimize efficiencies of buildings, automotive batteries, electronics and interior systems for automobiles. They are manufacturer

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Summit Electric Supply Co

Back 111

. Inc. is a privately held, independent wholesale distributor of industrial electrical equipment and supplies.

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Kowel Special Steel Wire Co., Ltd.

Back 112

The company's line of business includes the manufacturing of steel wire and related products.

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Selling price

Back 113

List price- trade discounts

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Selling price

Back 114

List price- trade discounts

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Net price

Back 115

Selling price-allowing discount