Relationship Between A Manufacturer And A Distributor

2) Explain the role of channel intermediaries in the product distribution process. Why is their role important?

Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.

A supply chain is very important to an organization. It can and should show the relationship between suppliers, distributors, managers and consumers. This paper would detail how important suppliers and distributions are to an organization’s success. And how important a supply chain is within an organization and how managers can utilize the supply chain. It is important that companies such as Target Corporations utilize the supply chain and gain competitive advantages. Target is one of the world’s largest retail stores; the first Target was opened in 1962 in Roseville, Minnesota (Target.com). By the end of 1962 there were only four Target and they were all operated in Minnesota.

In this way, when suppliers see that the purchasing department of an organization understand their business and value, and work well together with their Sales & Marketing department, they will be more inclined to work with the organization. This means that all parties can gain both in terms of increased value and respect towards each other.

The suppliers get the advantages of making their products be showcased for the consumers thru these retailing outlets. A wider scope of retail outlets could mean wider scope for the brand recognition of the seller’s products, that is why these retailing giants has more power than suppliers. But when it comes to distribution, having a strong supplier is important, the company be better over competitors when it comes to qualitative factors such as on time deliveries on their branches and wider network of

Unlike traditional supplier/buyer relationships that had a narrow focus, contemporarily such relationships are becoming more strategic thereby yielding adequate reduction of risk and good technological leverage etc. It should be recognized that this relationship is the most powerful process of consumer satisfaction.

Marketing channels are very important to both the manufacturer and the consumer. These channels are the way the manufacture releases their product to the consumer for purchasing. Manufactures can choose either a direct channel which is the means of selling customers or accepting orders from them. A sales force calls on customers and prospects to present information on products and persuade them to place orders. Retailer channel is the channel that manufacturers sell their goods directly to large retailers such as Amazon which then sell onto the final consumers. wholesaler channel typically buys and stores large quantities of several producers’ goods and then

How suppliers’ perceptions and your bargaining position affect your supply strategy. This focuses on suppliers’ perceptions, the effect on supplier relationship, reverse marketing, trade-offs between switching costs.

Task 1 - Describe the distribution process through different channels from the manufacturer through to the customer for the following; an independent retailer and a multiple retailer. (P2)

The manufacturers, distributors, and suppliers are all streams that contribute to the presence and quality of products. In the business world they function in a business to business market because their products are not directly available to consumers. Understanding the role that each of the links play is integral to viewing the supply chain as a system.

The supply chain at Gaviña consists of downstream partners. According to Armstrong, G., & Kotler, P. (2015), “downstream marketing channel partners, such as wholesales and retailers, form a vital link between the firm and its customers” (p. 304). So, Gaviña produces its products and make them available to valuable channels or resellers and suppliers that add value to their brand and help them build long-term relationships in the company’s chain. Armstrong, G., & Kotler, P. (2015), “…. Instead, most use intermediaries to bring their products to market… distribution channel… a set of interdependent organizations that help make a product or service available for use or consumption by the consumer or business user” (p.

* Must implement a good logistics program within the company to put in place just-in-time therefore leading to a decrease in the cost since price of goods constituted only 39% of the total cost

Forge prosperous partnerships with customers and suppliers, by being a manufacturer of high advanced fishing technology products.

The structure, scope, stakeholder composition and performance of distribution channels vary significantly across industries and can change quickly based on industry pricing and profitability dynamics. For purposes of this analysis automobiles and canned soup, one of the most popular consumer packaged goods (CPG), are analyzed based on their distribution channels. What unifies distribution channels across all industries are the contributions of each channel participant or partner to the value delivered to the customer (Wagner, Lindemann, 2008). Channel integration also varies significantly by industry, as customer requirements often redefine the architecture of channel participants over time to align with unmet needs.

"Despite the odds, Toyota and Honda have managed to replicate in an alien Western culture the same kind of supplier webs they built in Japan. Consequently, they enjoy the best supplier relations in the U.S. automobile industry…." (page 3 of the Liker & Choi article). Briefly describe the authors' explanation for why Toyota and Honda succeeded where the "Big 3" failed in terms of effective supplier relationship management. Do you agree with Liker & Choi's assessment? Please explain why or why not. Are there any barriers to prevent Ford and GM from emulating Toyota and Honda's approach to supplier relationship management?