IDIS 240 Test 1 Questions and Correct Answers
Distribution
knowledge, financing, logistics
Why supply chain needed
- inadequate finances
- Customer desire for product assortment
-Better rate of return on core business
-Constant effiency
5 specific service outputs
selling, inventory, credit, transportation, servicing
Why distributors have channel power
-Economics provide distribution functions
-distributors leverage customer and manufacturer relationships
-distributors provide value-added services
Trends Benefitting Distributors
-Increasing value of information
-move towards mass customization
-Increase use of Just in time delivery
Reductions in number of vendors
Future Role of Distributor
-Continued channel consolidation and acquisition
-Implementation and benefits of strategic alliances
, -Key channel performance metrics
-End-user purchasing strategies
-Implementation and use of technology
Product Based Purchasing
-Buy what can be sold at profit
-Distributor decides what to buy, sales team figures out to whom it can be sold at a profit
-A little "Old School" but still exists in many channels
Customer Based Purchasing
-Distributor decides to buy based on the requirements of the customers they are serving
-Tries to provide products at desired service level and most economical cost
Purchasing and Profitability
Provides the greatest opportunity for profitability, using cost reduction
Purchasing and Profitability - areas of concern:
-Reward System
-Invariability
- Product line Acceptability
Purchasing and Profitability - replenishment:
- Order-Point-Order Quantity Formula
- Electronic Data Interchange
3 types of sales
Distribution
knowledge, financing, logistics
Why supply chain needed
- inadequate finances
- Customer desire for product assortment
-Better rate of return on core business
-Constant effiency
5 specific service outputs
selling, inventory, credit, transportation, servicing
Why distributors have channel power
-Economics provide distribution functions
-distributors leverage customer and manufacturer relationships
-distributors provide value-added services
Trends Benefitting Distributors
-Increasing value of information
-move towards mass customization
-Increase use of Just in time delivery
Reductions in number of vendors
Future Role of Distributor
-Continued channel consolidation and acquisition
-Implementation and benefits of strategic alliances
, -Key channel performance metrics
-End-user purchasing strategies
-Implementation and use of technology
Product Based Purchasing
-Buy what can be sold at profit
-Distributor decides what to buy, sales team figures out to whom it can be sold at a profit
-A little "Old School" but still exists in many channels
Customer Based Purchasing
-Distributor decides to buy based on the requirements of the customers they are serving
-Tries to provide products at desired service level and most economical cost
Purchasing and Profitability
Provides the greatest opportunity for profitability, using cost reduction
Purchasing and Profitability - areas of concern:
-Reward System
-Invariability
- Product line Acceptability
Purchasing and Profitability - replenishment:
- Order-Point-Order Quantity Formula
- Electronic Data Interchange
3 types of sales
