Distribution and Retailing: Strategies, Channels, and Classifications, Exams of Production and Operations Management

Download Distribution and Retailing: Strategies, Channels, and Classifications and more Exams Production and Operations Management in PDF only on Docsity! 1 Chapter 12 Distribution and Retailing Distribution Strategies Choice based on: Type of market channel Target market Buying habits Product type Wholesale price zones Intensive/mass distribution As many consumers as possible with a variety of outlets Selective Only distribute to certain types of stores Exclusive Limit stores to create “image” Distribution Centers Manufactures and retailers From many locations to one Drop ship Distribution Center Technologies Conveyors Robotics Flow through - little storage Bar-codes and Vendor marking UPC Universal product code 12 digits Identifies vendor, style, color, size Benefits Maximize efficiency Time Accuracy Better inventory planning Perpetual inventory Other uses: Shipping Transfers Receiving EDI Electronic data interchange eMarkets Vendor managed retail Data mining RFID 2 Retail level Defined: The business of selling goods to the ultimate consumer Focus efforts on the final consumer Classifications Department Store Departmentalized Full markup Full and limited lines Goal: Broad range of customers, wide variety of merchandise, wide selection within categories, national and private labels Specialty Store (Limited, GAP, etc..) Specific – one or a few closely related categories Specific target market or product category Goal: Well defined target market, limited, deep assortment, national and private label Boutiques: Specialty store with designer priced merchandise Image and uniqueness Chain stores – Several retail units with similar merchandise Can be specialty chains, discount chains, department chains, etc. Standardized Centralized organizational structure Large chains (11 or more) Wal-Mart Private label is important Discount Below traditional prices Utilize mass merchandising High turnover, limited assortment, self- service, low overhead Off-price Buy merchandise at low prices Carry well known brands Assortments that change frequently, inconsistent