What are channel intermediaries give examples of different types of intermediaries?
Functions of IntermediariesIntermediaries make it possible for a company to deliver its products to the end user without needing to own the whole supply chain. Show
Learning Objectives Describe the functions of agents, wholesalers, distributors and retailers Key TakeawaysKey Points
Key Terms
Intermediaries Intermediaries, also known as distribution intermediaries, marketing intermediaries, or middlemen, are an extremely crucial element of a company's product distribution channel. Without intermediaries, it would be close to impossible for the business to function at all. This is because intermediares are external groups, individuals, or businesses that make it possible for the company to deliver their products to the end
user. For example, merchants are intermediaries that buy and resell products. Agents/BrokersAgents or brokers are individuals or companies that act as an extension of the manufacturing company. Their main job is to represent the producer to the final user in selling a product. Thus, while they do not own the product directly, they take possession of the product in the distribution process. They make their profits through fees or commissions. WholesalersUnlike agents, wholesalers take title to the goods and services that they are intermediaries for. They are independently owned, and they own the products that they sell. Wholesalers do not work with small numbers of product: they buy in bulk, and store the products in their own warehouses and storage places until it is time to resell them. Wholesalers rarely sell to the final user; rather, they sell the products to other intermediaries such as retailers, for a higher price than they paid. Thus, they do not operate on a commission system, as agents do.  Intermediaries: Retailers sell products to end users. They can be small "mom and pop" stores or huge chains such as Wal-Mart. DistributorsDistributors function similarly to wholesalers in that they take ownership of the product, store it, and sell it off at a profit to retailers or other intermediaries. However, the key difference is that distributors ally themselves to complementary products. For example, distributors of Coca Cola will not distribute Pepsi products, and vice versa. In this way, they can maintain a closer relationship with their suppliers than wholesalers do. RetailersRetailers come in a variety of shapes and sizes: from the corner grocery store, to large chains like Wal-Mart and Target. Whatever their size, retailers purchase products from market intermediaries and sell them directly to the end user for a profit. Channel Design A firm can have any number of intermediaries in its channels. A "level zero" channel has no intermediaries at all, which is
typical of direct marketing. A "level one" channel has a single intermediary, usually from the manufacturer to the retailer to the consumer. Streamlining DistributionStreamlining distribution involves the planning and efficient use of supply chain resources and may involve working with intermediaries. Learning Objectives Describe the different elements that help streamline the logistics and distribution process Key TakeawaysKey Points
Key Terms
Distribution Center: Streamlining decisions go beyond the distribution center itself. It involves all of the elements in the logistics and distribution process. Streamlining distribution involves the efficient use of
all technologies included in the work of logistics and distribution centers. It should be mentioned that the scope of the planning of logistics and distribution processes is not limited only to the planning of production, transportation, or distribution. It covers the entire logistics and distribution process with all the elements.
Strategic and Long-term PlanningThis element provides answers to the following questions:
Creation of Supply Chain Network This element optimizes the use of the necessary means in the current logistic network that includes suppliers, production locations, locations of distribution
means, and end users. Demand Forecast and PlanningDemand forecast and planning with empirical knowledge (forecasts based on the demand within the previous period) use statistical data and mathematical functions. It may be said that demand forecast is a one-sided process, since forecasts are used as the basis for planning only the possible customers' demand, rather than the quantity of goods that can be produced over the future period. Sales planningSales planning can be defined as a process in which demand forecast is converted into a feasible operative plan that can be used by producers and salespersons. This process may include the planning of production and/or optimization of supply chains in order to determine the possibility of meeting the demand. Stock planningStock planning allows the optimal level and location of finished products that meet the demand and the level of service of the end users. In principle, stock planning is used to calculate the optimal level of safety stocks at every location. Supply Chain PlanningSupply chain planning compares the demand forecast with the actual demand in order to develop a "master plan" (schedule), based on the multi-level sources and critical materials. The developed master plan spans the points of production and the distribution destinations, with the goal of synchronizing and optimizing production, distribution, and transportation. Production Planning The term production planning means the development of a master plan for single factories (producers). The master plan is based on the availability of materials, factory capacity, demand, and other operation factors. Distribution PlanningDistribution planning means the development of a feasible and viable plan of distributing end products from the producers (via logistics and distribution centers, warehouses, or crossdocking) to end users. Distribution planning is based on the actual transport costs and requirements that represent single goods locations. Transport PlanningTransport planning uses current transport prices for the minimization of dispatch costs. In order to minimize the transport costs and maximize the usage of the fleet, transport planning means the optimization of both the external and the internal goods flow. One of the main transport planning functions is allowing and performing collective (bundled) transport of goods, and the inclusion of intermodal transport systems into the logistics and distribution processes. Delivery Schedule The function of delivery schedule is to create a feasible (realistic) plan that meets the time requirements for the delivery of the product by the producer. The producer determines the optimal methods and time of delivery, taking into consideration the receiving of orders, the production schedule, and
the availability (planning) of transport. Licenses and AttributionsCC licensed content, Shared previously
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What are channel intermediaries?What are channel intermediaries? Channel intermediaries are the external groups, individuals and businesses that help a company deliver its products to customers. They act as agents between the original creator of the merchandise and the consumer who makes the last purchase.
What are the different types of intermediaries?There are four main types of intermediaries, Agents/Brokers, Wholesalers/Distributors, Retailers, and Specialized Intermediaries.
What are the 4 types of channels with examples?Types of Distribution Channels – 4 Important Types: Direct Sale, Sale through Retailer, Wholesaler, Agent. Direct Sale: This is the simplest form of distribution channel which involves the manufacturer and the consumers. ... . Sale through Retailer: ... . Sale through Wholesaler: ... . Sale through Agent:. What are marketing intermediaries What are the different types of marketing intermediaries?independent firms which assist in the flow of goods and services from producers to end-users; they include agents, wholesalers and retailers; marketing services agencies; physical distribution companies; and financial institutions. Also referred to as Middlemen.
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