key logistics functions in a supply chain
are firms that perform most or all of the logistics functions that channel members would
normally perform themselves? these functions include:
a. transportation — provides movement for materials in the system. five
modes (rail, air, pipeline, water, and truck) can be evaluated on six service
1. cost — charges for transportation services only
2. time — speed of transit
3. capability — what can be carried with the mode
4. dependability — reliability in terms of time, loss, and damage
5. accessibility — nearness to the mode's routes
6. frequency — schedules
warehousing and materials handling
warehousing and materials handling functions provide the storage capability to
the logistics system. materials handling — which involves moving goods over
short distances into, within, and out of warehouses and manufacturing plants — is
a key part of warehouse operations.
conflict in marketing channels. channel conflict arises when one channel member
believes another channel is engaged in behaviour that prevents it from
achieving its goals.
a. vertical conflict occurs between different levels in a marketing
channel, e.g., manufacturer and retailer. sources of conflict are:
when a channel member bypasses another member, and
sells and buys products direct it is called disintermediation.
disagreements over how profit margins are distributed
among channel members.
when manufacturers believe channel members are not
giving their products adequate attention.
b. horizontal conflict occurs between intermediaries at the same level
in a marketing channel, e.g., two retailers. sources of conflict are:
when a manufacturer increase its distribution coverage in a
dual distribution, when different types of retailers carry the same brands