Chapter 9 2023 Students.pdf

COPYRIGHT PERMISSION FORM - CP241/LDP1 LEGAL SERVICES: COPYRIGHT 2024 LECTURER MS...

COPYRIGHT PERMISSION FORM - CP241/LDP1 LEGAL SERVICES: COPYRIGHT 2024 LECTURER MS L DU PREEZ DEPARTMENT AGRICULTURAL MANAGEMENT COURSE SGM 3002 ELECTRONIC 45 CODE COPIES ONLY TITLE Marketing Management: PERMISSION PRASA Permission (JUTA) RECEIVED Permission is restricted to the unadjusted power points included by the Publisher in this prescribed book © Some rights reserved. This time-limited emergency licence (Covid-19) permits non- commercial use, distribution, and reproduction in any medium, provided the original author and source are credited in the customary fashion and provided re- used snippets link back to the original available from the publisher. The moral rights of the author have been asserted. M. HANSFORD COPYRIGHT OFFICER 1 10/2/2024 Add a footer Chapter 9 Distribution channels  Outcomes Understand the difference between the types of distribution channel participants Discuss the different distribution activities Discuss the role and functions of intermediaries Impact of product lifecycle on distribution Discuss customer satisfaction and customer service Explain the supply chain and discuss supply chain management Explain the concept of franchising and its advantages and disadvantages https://www.foodlogistics.com/software-technology/software- solutions/article/22405568/throughput-inc-how-inefficient-supply-chain- management-creates-inflated-food-prices MARKETING MANAGEMENT: A SOUTH AFRICAN PERSPECTIVE 3 10/2/2024 4th EDITION. MC Cant  A distribution channel is a series of firms or individuals who participate in the flow of goods and services from producer to final user or consumer. During your practical – what did the distribution channel consist of? 4 10/2/2024 Add a footer  What is a distribution channel? A distribution channel is a series of firms or individuals who participate in the flow of goods and services from producer to final user or consumer. Read page 266 5 10/2/2024 Add a footer  Channels for consumer products producer → consumer producer → retailer → consumer service producer → consumer service producer → agent → consumer producer → wholesaler → retailer → consumer producer → wholesaler-agent → wholesaler → retailer → consumer. 6 10/2/2024 Add a footer MARKETING MANAGEMENT: A SOUTH AFRICAN PERSPECTIVE  Channel design and planning Distribution management consists of two major decision areas: 1. The formation of a sequence of intermediaries who participate voluntarily or non- voluntarily in a distribution channel 2. The physical flow of products through a distribution system. The various channel design alternatives available to a manufacturing firm can be identified in terms of: the number of levels in the channel the number of intermediaries operating at the various levels the types of intermediaries used at each level The following distribution alternatives are generally available: Manufacturer’s sales force Manufacturer’s representatives Industrial suppliers. Read Pg272 MARKETING MANAGEMENT: A SOUTH AFRICAN PERSPECTIVE 8 10/2/2024  Function of members of the supply chain MA RK ETING M ANA GEM ENT: A SOUTH AFRIC AN PER SPEC TIVE 9 10/2/2024 a foo ter 4th E DITION. MC Cant 10 10/2/2024 Add a footer  Distribution channel specialisation Specialised activities Transactional Physical Facilitating 11 10/2/2024 Add a footer  Supply chain management https://www.cargill.co.za/en/company-overview https://www.potatopro.com/product-types/potato-supply-chain/south-africa Defining supply chain management SCM is the integration of the logistics requirements of the supplier, distributor and customer into one cohesive process that includes demand planning, forecasting, materials requisition, order processing, inventory allocation, order fulfilment, transportation services, receiving, invoicing and payment. What is Supply Chain Management in Agribusiness? “What is Supply Chain Management in Agribusiness?” is an important question in Agribusiness. Supply chain management can be described as the management of the flow of goods and services, starting with the origin of the goods and ending with the consumption of the commodity. It also involves the movement and storage of raw materials involved in work in progress, inventory, and items that are fully furnished. https://agribusinessedu.com/what-is-supply-chain-management-in-agribusiness/ 12 10/2/2024 Add a footer  Supply Chain Management Advantages: Supply chain management plays a very important role in this period of globalization, where businesses strive to provide consumers with the highest quality goods and meet all their demands. All businesses are heavily reliant on efficient supply chain processes. The main advantages of management of the supply chain are as follows: Develops stronger support and customer relationships. Provides better distribution processes with minimal delay for goods and services in demand. Improves production and corporate roles. Minimizes costs of warehouse and transport. Reduces direct and indirect costs. Helps to deliver the best goods to the right location at the correct time. Improves inventory management, supporting just-in-time stock models to be efficiently implemented. Allows businesses to respond to the challenges of globalization, economic upheaval, growing customer preferences, and associated variations. Helps businesses in the supply chain process in minimizing waste, cutting out prices, and generating efficiencies. Source: https://agribusinessedu.com/what-is-supply-chain-management-in-agribusiness/ 13 10/2/2024 Add a footer Supply Chain Management – Goals: Every business aims to balance supply with demand with the most effective use of resources in a timely manner. Here are some of the essential supply chain management objectives: In order to optimize resource utilization, create streamlined processes, eradicate redundant efforts and minimize inventory levels, supply chain stakeholders work together at different levels. Minimization of supply chain costs is very important, especially when businesses have economic uncertainty about their ability to save resources. Cost-efficient and affordable goods are important, but supply chain managers need to focus on generating value for their clients. Exceeding the needs of consumers on a daily basis is the only way to meet them. Increased consumer demands for the greater product range, personalized merchandise, inventory availability off-season, and fast delivery should be balanced at a cost comparable to in-store offerings. Merchants need to use inventory as a common resource to fulfill customer needs and use distributed order management technology to complete orders from the optimum node in the supply chain. Source: https://agribusinessedu.com/what-is-supply-chain-management-in-agribusiness/ Principles of supply chain management In general, some of the objectives of a supply chain manager include: increasing communication along all nodes of the supply chain to create an uninterrupted flow of materials and products decreasing inventory while still maintaining high customer service levels reducing the supplier base and developing supplier relationships in order to reduce overall costs standardising parts as much as possible in order to reduce the amount of inventory to be carried to fulfil customer orders within an acceptable timeframe. The value chain Value-creating stages Add a footer Add a footer Franchising Definition: Franchising involves collaboration between an independent person and a company that wishes to expand its business. In order to expand the business, the company (franchisor) allows a third party (franchisee) the right to use its trade name, business methods and know-how. In return, the franchisee, who is an independent trader, accepts certain restrictions on the way they conduct business. The franchisee also agrees to make royalty payments to the franchisor. Factors affecting the Agric Value Chain Source: See article – The Agricultural Food and value chain (KPMG, 2013) Franchisor services Advantages and disadvantages of franchising https://www.foodlogistics.com/sustainability/ agriculture/article/22159660/allied-market- research-management-of-agriculture-supply- chain https://www.alliedmarketresearch.com/agricul ture-supply-chain-management-market- A14572 https://www.foodlogistics.com/software- technology/software- solutions/article/22405568/throughput-inc- how-inefficient-supply-chain-management- creates-inflated-food-prices https://foodsupply.co.za/za/  Add a Slide Title - 4 31 10/2/2024 https://promar-international.com/what-will-the-future-look-like-for-agriculture/