00:48 Q 4 G) Good day. future Marketers! Today's lesson deals about the structure of distribution channels, its functions, and the nature of supply chain management. What Is a Distribution Channel? A distribution channel is a chair of businesses or intermediaries through which a good or service passes until it reaches the final buyer or the end consumer. Distribution channels can include wholesalers, retailers, distributors, and even the internet. Distribution channels are part of the downstream process. answering the question 'How do we get our product to the consumer?\" This is in contrast to the upstream process. also known as the supply chain, which answers the question "Who are our suppliers?\" Understanding Distribution Channels A distribution channel is a path by which all goods and services must travel to arrive at the intended consumer. Conversely, it also describes the pathway payments make from the end consumer to the original vendor. Distribution GSC-Cl'DLRMSESSLM, v.r. 03.00, EH'GCtI've June 9. 2021' channels can be short or long. and depend on the number of intermediaries required to deliver a product or service. Goods and services sometimes make their way to consumers through multiple channelsa combination of short and long. Increasing the number of ways a consumer is able to find a good can increase sales. But it can also create a complex system that sometimes makes distribution management difficult. Longer distribution channels can also mean less profit each intermediary charges a manufacturer for its service. Structure and Functions of Distribution Channel Direct and Indirect Channels Channels are broken into two diflerent formsdirect and indirect. A direct channel allows the consumer to make purchases from the manufacturer while an indirect channel allows the consumer to buy the goods from a wholesaler or retailer. Indirect channels are typical for goods that are sold in traditional brick-and-mortar stores. Generally, if there are more intermediaries involved in the distribution channel. the price for a good may increase. Conversely, a direct or short channel may mean lower costs for consumers because they are buying directly from the manufacturer. Types of Distribution Channels While a distribution channel may seem endless at times, there are three main types of channels, all of which include the combination of a producer. wholesaler, retailer, and end consumer. The first channel is the longest because it includes all four: producer. wholesaler, retailer, and consumer. The wine and adult beverage industry is a perfect 00:48 Q 4 G) Types of Distribution Channels While a distribution channel may seem endless at times, there are three main types of channels, all of which include the combination of a producer. wholesaler, retailer, and end consumer. The first channel is the longest because it includes all four: producer. wholesaler, retailer, and consumer. The wine and adult beverage industry is a perfect example of this long distribution channel. In this industrythanks to laws born out of prohibitiona winery cannot sell directly to a retailer. It operates in the three-tier system, meaning the law requires the winery to first sell its product to a wholesaler who then sells to a retailer. The retailer then sells the product to the end consumer. The second channel cuts out the wholesalerwhere the producer sells directly to a retailer who sells the product to the end consumer. This means the second channel contains only one intermediary. Dell. for example, is large enough to sell its products directly to reputable retailers such as Best Buy. The third and final channel is a direct-to-consumer model where the producer sells its product directly to the end consumer. Amazon, which uses its own platform to sell Kindles to its customers. is an example of a direct model. This is the shortest distribution channel possible. cutting out both the wholesaler and the retailer. What Is Supplyr Chain Management {SCH}? Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business's supply-side activities to maximize customer value and gain a competitive advantage in the marketplace. How Supply Chain Management (SCM) Works Supply chain management {SCM} represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible. Supply chains cover everything from production to product development to the information systems needed to direct these undertakings. Typically, SCM attempts to centrally control or link the production, shipment. and distribution of a product. By managing the supply chain, companies can cut excess costs and deliver products to the consumer faster. This is done by keeping tighter control of internal inventories. internal production. distribution, sales, and the inventories of company vendors. SCM is based on the idea that nearly every product that comes to market results from the efforts of various organizations that make up a supply chain. Although supply chains have existed for ages, most companies have only recently paid attention to them as a value-add to their operations. 5 Parts of SCM In SCM, the supply chain manager coordinates the logistics of all aspects of the supply chain which consists of ve pans: The plan or strategy The source (of raw materials or services) Manufacturing (focused on productivity and efficiency) Delive and lo istics 00:48 0 4 G) 5 Parts of SCM In SCM. the supply chain manager coordinates the logistics of all aspects of the supply chain which consists of five parts: The plan or strategy The source (of raviir materials or services) Manufacturing (focused on productivity and efficiency) Delivery and logistics The return system (for defective or unwanted products) The supply chain manager tries to minimize shortages and keep costs down. The job is not only about logistics and purchasing inventory. According to Salary.com. supply chain managers \"oversee and manage overall supply chain and logistic operations to maximize efficiency and minimize the cost of organization's supply chain.\" Productivity and efficiency improvements can go straight to the bottom line of a company. Good supply cha'n management keeps companies out of the headlines and away from expensive recalls and lawsuits. . m"... Activity 1: Channeling! Instruction: Consider yourself as a product manufacturer. Illustrate inside the box your desired distribution channel until your product reached your target customers. [3 pm... Activity 2 - What is my Functions? Instruction: Based on the distribution channels, discuss the function of each channel by filling out the table below. Distribution Channel Functionls Producer Wholesaler 00:48 ~ 4 1 9.00 KB/S 6 Ill 26 Let Us Do Activity 2 - What is my Functions? Instruction: Based on the distribution channels, discuss the function of each channel by filling out the table below. Distribution Channel Function/s Producer Wholesaler Retailer Consumer Let Us Apply Activity 3: Supply All You Can! Instruction: Consider that you are a supplier of a raw materials to a multi-national manufacturing company. Discuss below how you will develop an effective supply management chain. You can add illustration for further explanation of your answer inside the box. > > Rubrics Excellent - 30 Ideas are very relevant to the topic. They are presented in a complete and logical manner. Sentence structure is consistently correct. Handwriting is very neat and readable Very Good - 20 Ideas are very relevant to the topic. They are presented in an adequate and logical manner. Sentence structure is generally correct