Channel Line
Essay by 24 • November 28, 2010 • 466 Words (2 Pages) • 1,405 Views
-Entity which keeps the channel in line channel leader (manufacturer).
-Also, retailer dominated channels. Example: Wal-Mart- Sometimes dominated by wholesale, between manufacturer and retailer.
-Example: IGA- Found in rural areas- independently owned. Belonging to the IGA gives them a line of store brands. However, usually something kills them like "Food Lion."
-Keep this whole channel in line.
-To be successful everyone has to work for the same goal.
-Problem everyone is looking out for themselves.
-Objective everybody needs to benefit.
-Sometimes channel structure needs to be changed.
-Channels are typically getting shorter (fewer entities between the customer and manufacturer).
-Only ones really in trouble is wholesaler. They can't really add value
-Whole point of channel is to add value
-Customer Service- important because every other part of logistics supports customer service. -Service Costs.
-What customer service is- some think of it as an activity (something that they just do. Have a customer service department). -It brings complaint resolutions.
Others may view it as a performance measure. -Example: Has to be completed within 48 hours in order for it to be good customer service.
-Some might think of it as a corporate philosophy
1. Dependability- Most important. Example: The product is on the shelf. Lose customer if you do not have it.
2. Time- Order cycle time. Represent time between customer places order and receives goods. Pretty close to dependability
3. Convenience- Important in US especially. Other cultures not so concerned. Also includes technical support. After sales service
4. Communication- from firm to customer. Are you listening to the customer?
5. Honesty- Just being forth right with your customers
-With customer service have to make sure what your customer wants.
-Give them the level of service they want and that's it. You can't dazzle people forever.
-Sometimes it's off putting (like a pushy waiter).
-Challenge is to really understand what your customers want. But, no more than that.
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