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Objectives
Objectives
Objectives
Objectives
Retailing
Retailing
Wholesaling
Wholesaling
Four Levels of Retail Service
Four Levels of Retail Service
Four Levels of Retail Service
Four Levels of Retail Service
Self-service
Self-service
Self-selection
Self-selection
Limited-service
Limited-service
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Retail Positioning Map
Retail Positioning Map
Classification Of Retailer Types
Classification Of Retailer Types
Specialty Stores Specialty Stores Department Stores Department Stores Supermarkets Supermarkets Convenience Stores Convenience Stores Off-Price Retailer Off-Price Retailer Superstores Superstores Catalog Showroom Catalog Showroom
Wide Variety of Product Lines i.e. Clothing, Home Furnishings, & Household Items
Wide Variety of Product Lines i.e. Clothing, Home Furnishings, & Household Items
Wide Variety of Food, Laundry, & Household Products
Wide Variety of Food, Laundry, & Household Products
Limited Line of High-Turnover Convenience Goods
Limited Line of High-Turnover Convenience Goods
Inexpensive, Overruns, Irregulars, and Leftover Goods
Inexpensive, Overruns, Irregulars, and Leftover Goods
Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services
Large Assortment of Routinely Purchased Food & Nonfood Products, Plus Services
Broad Selection, Fast Turnover, Discount Prices
Broad Selection, Fast Turnover, Discount Prices
Narrow Product Line, Deep Assortment
Narrow Product Line, Deep Assortment
Store Type
Length and Breadth of Product
Assortment
Discount Stores
Discount Stores Broad Product Line, Low Margin, High Volume
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Types of NonStore Retailing
Types of NonStore Retailing
Types of NonStore Retailing
Types of NonStore Retailing
Direct Selling
Direct Selling
Direct Marketing
Direct Marketing
Buying Services
Buying Services
NonStore Retailing
Accounts for More
Than 12% of All
Consumer
Purchases, and is
trending up.
Automatic Vending
Low Price
Low Status
Low Margin
Mid Price
Mid Status
Mid Margin
High Price
High Status
High Margin
Wheel of Retailing
Wheel of Retailing
Wheel of Retailing
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Why are Wholesalers Used?
Why are Wholesalers Used?
Why are Wholesalers Used?
Why are Wholesalers Used?
Wholesaler
Functions
Management Services & Advice
Management
Services & Advice Selling andPromoting Selling and
Promoting
Market Information
Market
Information Assortment BuildingBuying and Buying and
Assortment Building
Risk Bearing
Risk Bearing Bulk BreakingBulk Breaking
Transporting Transporting Financing
Goals of the Logistics System
Goals of the Logistics System
Goals of the Logistics System
Goals of the Logistics System
•
Provide a Targeted Level of Customer Service at
the Least Cost.
•
Maximize Profits, Not Sales.
Higher Distribution Costs/
Higher Customer Service Levels
Lower Distribution Costs/
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Inventory
When to order How much to order
Just-in-time
Inventory
When to order How much to order
Just-in-time
Costs
Minimize Costs of Attaining Logistics
Objectives
Costs
Minimize Costs of Attaining Logistics Objectives
Warehousing
Storage DistributionWarehousing
Storage DistributionOrder Processing
Submitted Processed ShippedOrder Processing
Submitted Processed ShippedLogistics
Functions
Transportation
Water, Truck, Rail, Pipeline & Air
Logistics Systems
Logistics Systems
Logistics Systems
Rail
Nation’s largest carrier, cost-effective for shipping bulk products, piggyback
Rail
Nation’s largest carrier, cost-effective for shipping bulk products, piggyback
Truck
Flexible in routing & time schedules, efficient for short-hauls of high value goods
Truck
Flexible in routing & time schedules, efficient for short-hauls of high value goods
Water
Low cost for shipping bulky, low-value goods, slowest form
Water
Low cost for shipping bulky, low-value goods, slowest form
Pipeline
Ship petroleum, natural gas, and chemicals from sources to markets
Pipeline
Ship petroleum, natural gas, and chemicals from sources to markets
Air
High cost, ideal when speed is needed or to ship high-value, low-bulk items
Air
High cost, ideal when speed is needed or to ship high-value, low-bulk items
Transportation Modes
Transportation Modes
Transportation Modes
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1. Speed.
2. Dependability.
3. Capability.
4. Availability.
5. Cost.
Rating Transportation Modes
Rating Transportation Modes
Rail
Rail 33 44 22 22 33 Water
Water 44 55 11 44 11 Truck
Truck 22 22 33 11 44 Pipeline
Pipeline 55 11 55 55 22 Air
Air 11 33 44 33 55
Source:
Source: See Carl M. Guelzo; See Carl M. Guelzo; Introduction to Logistics Management Introduction to Logistics Management Englewood Cliffs, NJ:Englewood Cliffs, NJ: Prentice Hall, 1986), p. 46.
Prentice Hall, 1986), p. 46.
(Door-to-door delivery time) (Meeting Schedules on Time) (Ability to Handle Various Products) (No. of Geographic Points Served) (Per Ton-Mile)
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Review
Review
Review
Review
Retailing
Retailing
Wholesaling
Wholesaling