This document outlines the key learning objectives for a course on logistics and supply chain management. It covers 11 main topics: (1) marketing channels and intermediaries, (2) channel structures and arrangements, (3) supply chain management benefits, (4) factors influencing channel strategy, (5) channel relationships, (6) logistical components, (7) transportation, (8) sourcing and procurement, (9) production scheduling, and (10) inventory control. The overall goal is to explain the important concepts and components involved in managing the flow of goods from suppliers to customers.

1. LOGISTICS AND SUPPLY
CHAIN MANAGEMENT

2. LEARNING OBJECTIVES
1. Explain what a marketing channel is and
why intermediaries are needed.
2. Define the types of channel intermediaries
and describe their functions and activities.

3. LEARNING OBJECTIVES
(CONTINUED)
3. Describe the channel structures for consumer
and business-to-business products and discuss
alternative channel arrangements.
4. Define supply chain management and discuss
its benefits.
5. Discuss the issues that influence channel
strategy.

4. LEARNING OBJECTIVES
(CONTINUED)
6. Explain channel leadership, conflict, and
partnering.
7. Describe the logistical components of the
supply chain.
8. Discuss the concept of balancing logistics
service and cost.

5. LEARNING OBJECTIVES
(CONTINUED)
9. Discuss new technology and emerging trends
in supply chain management.
10. Discuss channels and distribution decisions
in global markets.
11. Identify the special problems and
opportunities associated with distribution in
service organizations.

6. 1
LEARNING OBJECTIVE
Explain what a marketing channel
is and why intermediaries are needed.

7. 1
MARKETING CHANNELS
A set of interdependent organizations
A set of interdependent organizations
Marketing
Marketing that ease the transfer of ownership as
that ease the transfer of ownership as
Channel
Channel products move from producer to
products move from producer to
business user or consumer.
business user or consumer.
The connected chain of all the business
The connected chain of all the business
Supply
Supply entities, both internal and external to the
entities, both internal and external to the
Chain
Chain company, that perform or support the
company, that perform or support the
logistics function.
logistics function.

8. MARKETING CHANNEL 1
FUNCTIONS
Specialization and
Specialization and
Division of Labor
Division of Labor
Channels
Channels
Fulfill
Fulfill
Three
Three Overcoming
Overcoming
Important
Important Discrepancies
Discrepancies
Functions
Functions
Providing Contact
Providing Contact
Efficiency
Efficiency

9. SPECIALIZATION AND DIVISION OF 1
LABOR
 Provides economies of scale
 Aids
producers who lack resources to
market directly
 Builds
good relationships with
customers

10. 1
OVERCOMING DISCREPANCIES
Discrepancy
Discrepancy The difference between the amount
The difference between the amount
of
of of product produced and the
of product produced and the
Quantity
Quantity amount an end user wants to buy.
amount an end user wants to buy.
Discrepancy The lack of all the items a
The lack of all the items a
Discrepancy customer needs to receive full
of customer needs to receive full
of satisfaction from a product or
satisfaction from a product or
Assortment
Assortment products.
products.

11. 1
OVERCOMING DISCREPANCIES
A situation that occurs when a
A situation that occurs when a
Temporal
Temporal product is produced but a
product is produced but a
Discrepancy
Discrepancy customer is not ready to buy it.
customer is not ready to buy it.
The difference between the
The difference between the
Spatial
Spatial location of a producer and the
location of a producer and the
Discrepancy
Discrepancy location of widely
location of widely
scattered markets.
scattered markets.

12. 1
CONTACT EFFICIENCY
Zenith
Zenith Sony
Sony RCA
RCA Toshiba
Toshiba
Zenith
Zenith Sony
Sony RCA
RCA Toshiba
Toshiba
Circuit City
Circuit City

13. 2
LEARNING OBJECTIVE
Define the types of channel
intermediaries and describe their
functions and activities.

14. 2
CHANNEL INTERMEDIARIES
A channel intermediary that
A channel intermediary that
Retailer
Retailer sells mainly to customers.
sells mainly to customers.
An institution that buys goods
An institution that buys goods
Merchant
Merchant from manufacturers, takes title
from manufacturers, takes title
Wholesaler
Wholesaler to goods, stores them,
to goods, stores them,
and resells and ships them.
and resells and ships them.
Wholesaling intermediaries who
Wholesaling intermediaries who
Agents and
Agents and facilitate the sale of a product by
facilitate the sale of a product by
Brokers
Brokers representing channel member.
representing channel member.

15. 2
CHANNEL INTERMEDIARIES
Retailers
Retailers Take Title to Goods
Take Title to Goods
Merchant
Merchant
Wholesalers
Wholesalers Take Title to Goods
Take Title to Goods
Agents
Agents
and
and Do NOT Take Title to Goods
Do NOT Take Title to Goods
Brokers
Brokers

16. CHANNEL FUNCTIONS 2
PERFORMED BY INTERMEDIARIES
Contacting/Promotion
Transactional
Transactional Negotiating
Functions
Functions
Risk Taking
Physically distributing
Logistical
Logistical Storing
Functions
Functions
Sorting
Facilitating Researching
Facilitating
Function
Function Financing

17. 2
LOGISTICS
The process of strategically
managing the efficient flow
and storage of raw
materials, in-process
inventory, and finished
goods from point of origin
to point of consumption.

18. 3
LEARNING OBJECTIVE
Describe the channel structures
for consumer and
business-to-business products
and discuss alternative
channel arrangements.

19. 3
DIRECT CHANNEL
A distribution channel in
which producers sell
directly to consumers.

20. CHANNELS FOR CONSUMER 3
PRODUCTS
Direct Retailer Wholesaler Agent/Broker
Channel Channel Channel Channel
Producer Producer Producer Producer
Agents or
Brokers
Wholesalers Wholesalers
Retailers Retailers Retailers
Consumers Consumers Consumers Consumers

21. CHANNELS FOR BUSINESS-TO- 3
BUSINESS PRODUCTS
Direct Industrial Agent/Broker Agent/Broker Direct
Channel Distributor Channel Industrial Channel
Channel
Producer Producer Producer Producer Producer
Agents or Agents or
Brokers Brokers
Industrial Industrial
Distributor Distributor
Industrial Industrial Industrial Industrial Government
User User User User Buyer

22. ALTERNATIVE CHANNEL 3
ARRANGEMENTS
Multiple Channels
Nontraditional
Different Channels
Channels
May be Used
Adaptive Channels
Strategic Channel
Alliances

23. 4
LEARNING OBJECTIVE
Define supply chain management
and discuss its benefits.

24. 4
SUPPLY CHAIN MANAGEMENT
A management system that
coordinates and integrates
all of the activities
performed by supply chain
members into a seamless
process, from the source to
the point of consumption.

25. 4
SUPPLY CHAIN MANAGEMENT
Focus on Innovative Solutions
Focus on Innovative Solutions
Competitive with focus on
Competitive with focus on
Customer Satisfaction
Customer Satisfaction
Results
Results Synchronized Flow
of Synchronized Flow
of
Supply Chain
Supply Chain
Management
Management Customer Value
Customer Value

26. ROLE OF SUPPLY CHAIN 4
MANAGEMENT
Communicator of
Communicator of
customer demand from
customer demand from
Role of point of sale to supplier
point of sale to supplier
Role of
Supply Chain
Supply Chain
Management
Management
Physical flow process
Physical flow process
that engineers the
that engineers the
movement of goods
movement of goods

27. SUPPLY CHAIN MANAGEMENT 4
ACTIVITIES
Determine channel strategy and
Determine channel strategy and
level of distribution intensity
level of distribution intensity
Manage relationships
Manage relationships
in the supply chain
in the supply chain
Manage the logistical components
Manage the logistical components
of the supply chain
of the supply chain
Balance the costs of the supply chain
Balance the costs of the supply chain
with the service level demanded by customer
with the service level demanded by customer

28. BENEFITS OF 4
SUPPLY CHAIN MANAGEMENT
Reduced Costs
Reduced Costs
Improved Service
Improved Service
Common Benefits
Common Benefits
of Supply Chain
of Supply Chain Enhanced Revenues
Enhanced Revenues
Management
Management

29. 5
LEARNING OBJECTIVE
Discuss the issues that
influence channel strategy.

30. 5
CHANNEL STRATEGY DECISIONS
Issues that Influence
Issues that Influence
Channel Strategy
Channel Strategy
Factors
Factors Levels of
Levels of
Affecting
Affecting Distribution
Distribution
Channel
Channel Intensity
Intensity
Choice
Choice
Market Factors
Market Factors Intensive Distribution
Intensive Distribution
Product Factors
Product Factors Selective Distribution
Selective Distribution
Producer Factors
Producer Factors Exclusive Distribution
Exclusive Distribution

31. 5
MARKET FACTORS
Customer Profiles
Customer Profiles
Consumer or Industrial
Consumer or Industrial
Customer
Customer
Market Factors Size of Market
Size of Market
Market Factors
That Affect
That Affect
Channel
Channel
Choices
Choices Geographic Location

32. 5
PRODUCT FACTORS
Product Complexity
Product Complexity
Product Price
Product Price
Product Life Cycle
Product Life Cycle
Product Factors
Product Factors
That Affect
That Affect
Channel
Channel
Choices
Choices Product Delicacy
Product Delicacy

33. 5
PRODUCER FACTORS
Producer Resources
Producer Resources
Number of Product Lines
Number of Product Lines
Producer Factors
Producer Factors
That Affect
That Affect
Channel Desire for Channel Control
Desire for Channel Control
Channel
Choices
Choices

34. LEVELS OF DISTRIBUTION 5
INTENSITY
Number of
Number of
Intensity Level
Intensity Level Objective
Objective Intermediaries
Intermediaries
Achieve mass market
Achieve mass market
Intensive
Intensive selling.
selling. Many
Many
Convenience goods.
Convenience goods.
Work with selected
Work with selected
intermediaries.
intermediaries.
Selective Several
Several
Selective Shopping and some
Shopping and some
specialty goods.
specialty goods.
Work with single
Work with single
intermediary. Specialty
intermediary. Specialty
Exclusive
Exclusive goods and industrial
One
One
goods and industrial
equipment.
equipment.

35. 6
LEARNING OBJECTIVE
Explain channel leadership,
conflict, and partnering.

36. MANAGING CHANNEL 6
RELATIONSHIPS
Channel Power
Channel Power
Channel Control
Channel Control
Social
Social
Dimensions
Dimensions Channel Leadership
Channel Leadership
of Channels
of Channels
Channel Conflict
Channel Conflict
Channel Partnering
Channel Partnering

37. CHANNEL POWER, 6
CONTROL, AND LEADERSHIP
A channel member’s capacity to
A channel member’s capacity to
Channel
Channel control or influence the behavior
control or influence the behavior
Power
Power of other channel members
of other channel members
A situation that occurs when one
A situation that occurs when one
Channel
Channel marketing channel member
marketing channel member
Control
Control intentionally affects another
intentionally affects another
member’s behavior.
member’s behavior.
A member of a marketing channel
A member of a marketing channel
Channel
Channel that exercises authority/power over
that exercises authority/power over
Leader
Leader the activities of other members.
the activities of other members.

38. 6
CHANNEL CONFLICT
A clash of goals and methods between
distribution channel members.
Horizontal
Horizontal Occurs among channel members
Occurs among channel members
Conflict
Conflict on the same level
on the same level
Vertical
Vertical Occurs among channel members
Occurs among channel members
Conflict
Conflict at different levels
at different levels

39. 6
CHANNEL PARTNERING
The joint effort of all
channel members to create
a supply chain that serves
customers and creates a
competitive advantage.

40. TRANSACTION- VS. 6
PARTNERSHIP-BASED FIRMS
Transaction-Based
Transaction-Based Partnership-Based
Partnership-Based
Short-term relationships
Short-term relationships Long-term relationships
Long-term relationships
Multiple suppliers
Multiple suppliers Few suppliers
Few suppliers
Adversarial relationships
Adversarial relationships Cooperative partnerships
Cooperative partnerships
Price dominates
Price dominates Value-added services dominate
Value-added services dominate
Minimal supplier investment
Minimal supplier investment High supplier/buyer investment
High supplier/buyer investment
Minimal information sharing
Minimal information sharing Extensive information sharing
Extensive information sharing
Firms are independent
Firms are independent Firms are interdependent
Firms are interdependent
Minimal functional
Minimal functional Extensive functional
Extensive functional
area interaction
area interaction area interaction
area interaction

41. 7
LEARNING OBJECTIVE
Describe the logistical components
of the supply chain.

42. INTEGRATED LOGISTICAL
COMPONENTS OF THE SUPPLY 7
CHAIN
Sourcing & Procurement
Sourcing & Procurement
Logistics Information System
Logistics Information System
Production Scheduling
Production Scheduling
Supply
Supply Order Processing & Customer Service
Order Processing & Customer Service
Chain
Chain
Team
Team Inventory Control
Inventory Control
Warehouse & Materials Handling
Warehouse & Materials Handling
Transportation
Transportation

43. 7
SOURCING AND PROCUREMENT
Plan
Plan
Purchasing Strategies
Purchasing Strategies
Develop
Develop
Specifications
Specifications
Role of
Role of
Purchasing
Purchasing Select
Select
Departments
Departments Suppliers
Suppliers
Negotiate
Negotiate
Price
Price
Negotiate
Negotiate
Service Levels
Service Levels

44. 7
PRODUCTION SCHEDULING
Traditional Focus Customer Focus
Traditional Focus Customer Focus
Push/Pull
Push/Pull Push
Push Pull
Pull
Strategy
Strategy
Start of
Start of Customer-Order
Customer-Order
Inventory-Based
Inventory-Based
Production
Production Based
Based
Manufacturing
Manufacturing Mass Production Mass Customization
Mass Production Mass Customization

45. 7
JUST-IN-TIME MANUFACTURING
A process that redefines
and simplifies
manufacturing by reducing
inventory levels and
delivering raw materials
just when they are needed
on the production line.

46. 7
BENEFITS OF JIT
 Reduces raw material inventories
 Shortens lead times
 Creates better supplier relationships
 Reduces production and storeroom costs
 Reduces paperwork

47. ELECTRONIC DATA 7
INTERCHANGE
Information technology
that replaces paper
documents that accompany
business transactions.

48. 7
INVENTORY CONTROL SYSTEM
A method of developing
and maintaining an
adequate assortment of
materials or products to
meet a manufacturer’s or a
customer’s demand.

49. WAREHOUSE AND 7
MATERIALS-HANDLING
Receive goods into
warehouse
Identify, sort and
Functions label goods
of
Materials
Dispatch the goods to
Handling temporary storage
Recall, select, or pick the
goods for shipment

50. 7
TRANSPORTATION
Cost
Cost
Transit Time
Transit Time
Reliability
Reliability
Criteria
Criteria Capability
Capability
for
for
Transportation
Transportation Accessibility
Accessibility
Mode
Mode
Choice
Choice Traceability
Traceability

51. CRITERIA FOR RANKING 7
MODES OF TRANSPORTATION
Highest Lowest
Relative Truck Rail Pipe Water
Air
Cost
Transit
Water Rail Pipe Truck Air
Time
Reliability Pipe Truck Rail Air Water
Capability Water Rail Truck Air Pipe
Accessibility Truck Rail Air Water Pipe
Traceability Air Truck Rail Water Pipe

52. 8
LEARNING OBJECTIVE
Discuss the concept of
balancing logistics service and cost.

53. 8
LOGISTICS SERVICE
Interrelated activities
performed by a member
of the supply chain to
ensure that the right
product is in the right
place at the right time.

54. 8
LOGISTICAL COMPETENCIES
 Deviselogistics service strategies as a means
of competitive differentiation
 Integratemembers of supply chain to achieve
operating excellence
 Respondquickly to changing logistical
requirements
 Constantlymonitor all aspects of the
supply chain

55. 9
LEARNING OBJECTIVE
Discuss new technology
and emerging trends in
supply chain management.

56. TRENDS IN 9
SUPPLY CHAIN MANAGEMENT
Advanced
Advanced
Computer Technology
Computer Technology
Trends
Trends
Affecting the
Affecting the
Logistics Outsourcing of
Outsourcing of
Logistics Logistics Functions
Industry Logistics Functions
Industry
Electronic
Electronic
Distribution
Distribution

57. 10
LEARNING OBJECTIVE
Discuss channels and distribution
decisions in global markets.

58. CHANNELS AND DISTRIBUTION 10
DECISIONS FOR GLOBAL MARKETS
Channel structure differs
Global Channel
Global Channel Channel types differ
Development
Development
“Gray” marketing channels
Awareness of trade legalities
Global Supply
Global Supply
Chain Management
Chain Management
Transportation Infrastructure

59. 11
LEARNING OBJECTIVE
Identify the special problems and
opportunities associated with
distribution in service organizations.

60. CHANNELS AND DISTRIBUTION 11
DECISIONS FOR SERVICES
Minimizing wait times
Minimizing wait times
Managing service capacity
Managing service capacity
Areas of Focus
Areas of Focus Improving delivery
for Improving delivery
for through new channels
Service Distribution
Service Distribution through new channels

61. LEARNING OBJECTIVE
 Discuss the concept of customer
service.

62. CUSTOMER SERVICE CONCEPT
 Customer service
relates to the
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relationship
between a product
or service provider
and those people
who use or buy its
products or
services.

63.  Identifying Customers
 Most organizations will have more than one
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type of customer.
 They will vary according to age, gender,
personality and economic and social position.
 They will also differ according to such
variables as their previous experience of
dealing with the organization, the importance
of the purchase to them, whether or not they
are buying for themselves or their company
and their existing level of knowledge about the
products or services.

64.  Defining Service
 Customer service behaviors include a huge
range of factors including efficiency, speed of
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response, attention to detail, listening,
reassurance, providing information and
following up.
 Attitude is also important in terms of
variables such as friendliness, respect, concern
and authenticity.
 The type and levels of service provided will
depend on the ways customers interact with
the organization and its employees.

65.  Type of Relationship
 “Customers” may be potential customers, one-
time customers, repeat customers or ex-
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customers.
 Each will have specific needs for the business
to address appropriately in terms of service.
 Potential customers’ service needs may relate
to raising awareness of features and benefits
of the product or service and how and where it
is available, as well as reassurance about
organizational values and integrity.

66.  Training
 Every organization—regardless of its size or
nature of business—needs to have a clear
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framework for customer service, incorporating
detailed policies, procedures and standards.
 Organizations should provide regular
customer service training for all so they
understand the role they play in overall
customer service within the organization and
the specific behaviors and attitudes expected
of them.
 Refresh both service standards and procedures
and training regularly to meet changing
customer needs and competitor activities.

67.  Getting Feedback
 Great customer service depends on looking at
things from the customer’s perspective.
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 Mystery shopping and regular customer
satisfaction surveys can be extremely helpful
in pinpointing good and bad customer service,
as can ongoing observation and supervision of
customer service situations at a range of
different levels.
 Getting employees to focus on and discuss
customer service issues on a regular basis is a
good way of helping them improve standards
and take ownership at an individual and team
level.