Key Terms
Logistical functions
Assembly, storage, sorting, and transportation.
Facilitating functions
Post-purchase service, financing, information sharing, channel coordination.
EXAMPLE
A customer buying eggs for a family breakfast wants high spatial convenience, fast timing, and minimal service. A custom
Contact efficiency is the core value
One location, many products. Retail can be in-store, online, kiosk, or doorstep — format is secondary to the direct-to-c
Examples
Real estate agents, insurance brokers, literary agents, export brokers.
CSCMP definition of supply chain management
Encompasses planning and management of all activities in sourcing, procurement, conversion, and logistics — including co
Producer owns the sales experience
Store layout, staff training, compensation structure, messaging. Sales staff can be incentivized to push specific produc
Timing of availability
Do I need it immediately or can I wait? 3.
Quantity
Am I willing to buy in bulk? 4.
Contact efficiency
Buyer accesses many different products in one place or transaction; reduces effort for the consumer.
Channel partners
All organizations that collectively facilitate a product's path from producer to user.
Transactional functions
Buying, selling, and risk assumption within the channel.
Routinization
The channel benefit ensuring products are consistently found where consumers expect them; guides producers on what to ma
Wholesaler
Buys in large quantities, stores, and resells in smaller quantities; takes title to merchandise.
Agent
Represents buyer or seller permanently; does NOT take title to merchandise.