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SUPPLYCHAIN MANAGEMENT

M marketing14
GREWAL / LEVY
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Supply Chain Management

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Supply Chains Streamline Distribution

Reducenumber oftransactions Increasevalue forconsumers Moreecient andeective
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Information Flows

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Electronic Data Interchange

Advanced shipping notice Vendor Managed inventory Intranet

CPFR

Extranet

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Pull and Push Supply Chain

Pull
Ordersbasedonsales data Moreaccurate inventory Betterwhendemand isuncertain

Push
Merchandiseallocated basedonforecast Doesnotneed sophisticatedIS system Goodforsteady demanditems

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Making Merchandise Flow

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The Distribution Center

Managementofinboundtransportation ReceivingandcheckingusingUPCandRFID StoringandCrossDocking GettingMerchandiseFloorReady Preparingtoship Shippingtostore
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Inbound Transportation

Dispatchercoordinates deliveries Manufacturermaypay transportation expensesorretailers maynegotiatedirectly withtrucking companiesandpay expenses

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Receiving and Checking

Receiving

Checking

Radio Frequency Distribution (RFID)Tags

Container computer chips

Arrival receipt

Undamaged

Ordered= received

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Storing and Cross-Docking

Traditional Crossdocking Combinations

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Getting Merchandise Floor-Ready

Ticketingandmarking Increasinglyrmsareforcing supplierstoshipoorready merchandise

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Shipping Merchandise to Stores

Shippingmerchandise tostoresiscomplex formultistorechains Distributioncenters usesophisticated routingandscheduling systems

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Inventory Management Through Just-In-Time Systems

Justintime(JIT)

Quickresponse(QR)
Zappos Website

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Managing Supply Chains Through Vertical Integration

Independentorconventionalsupplychain

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Types of Vertical Marketing Systems

Independentor conventional supplychain Administered verticalmarketing system

Contractualvertical marketingsystem

Corporatevertical marketingsystem

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Managing Supply Chains Through Strategic Relationships

Open Communications

MutualTrust

CommonGoals

Strategic Relationships

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Relationship of supply chain members

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Glossary
Merchandisecartonsthatarecrossdockedare prepackagedbythevendorforaspecicstore.

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Glossary
Manufacturerscanshipmerchandiseeitherdirectly toastoreortoadistributioncenter,whereitis thenshippedtothestore.

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Glossary
Electronicdatainterchange(EDI)isthecomputer tocomputerexchangeofbusinessdocuments fromaretailertoavendorandback.

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Glossary
Justintimeinventorysystemsareinventory managementsystemsdesignedtodeliverless merchandiseonamorefrequentbasisthan traditionalinventorysystems.

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Glossary
Radiofrequencyidentication(RFID)tagsaretiny computerchipsthatautomaticallytransmittoa specialscanneralltheinformationabouta containerscontentsorindividualproducts.

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Glossary
Astrategicrelationshiporpartneringrelationship involvesthesupplychainmembersbeing committedtomaintainingtherelationshipover thelongtermandinvestinginopportunitiesthat aremutuallybenecial.

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Glossary
Supplychainmanagementisasetofapproachesand techniquesrmsemploytointegratetheirsuppliers, manufacturers,warehouses,stores,andtransportation intermediariesintoaseamlessoperationinwhich merchandiseisproducedanddistributedintheright quantities,totherightlocations,andattherighttime,as wellastominimizesystemwidecostswhilesatisfyingthe servicelevelsthattheircustomersrequire.

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Glossary
Vendormanagedinventory(VMI)isanapproach forimprovingsupplychaineciencyinwhichthe manufacturerisresponsibleformaintainingthe retailersinventorylevelsineachofitsstores.

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