Managing Market Logistics, Wholesaling and Retailing

Market logistics includes planning the infrastructure to meet demand, then implementing and controlling the physical flows of materials and final goods from points of origin to points of use, to meet customer requirements at a profit

What on-time delivery standard should we offer? What levels should we attain in ordering and billing accuracy? Selecting the best channel design and network strategy for reaching the customers Developing operational excellence in sales forecasting, warehouse management, transportation management, and materials management

ORDER PROCESSING: Most companies today are trying to shorten the order-to-payment cyclethat is, the elapsed time between an orders receipt, delivery, and payment WAREHOUSING

TRANSPORTATION

Wholesaling includes all the activities in selling goods or services to those who buy for resale or business use. It excludes manufacturers and farmers because they are engaged primarily in production, and it excludes retailers Wholesalers pay less attention to promotion, atmosphere, and location because they are dealing with business customers rather than final consumers.

Merchant wholesalers Full-service wholesalers Limited-service wholesalers Brokers and agents Specialized wholesalers Second, wholesale transactions are usually larger than retail transactions, and wholesalers usually cover a larger trade area than retailers Third, the government deals with wholesalers and retailers differently in terms of legal regulations and taxes.

Wholesalers are more efficient in performing one or more of the following functions: Selling and promoting Buying and assortment building Bulk breaking Warehousing. Market info.

Arrow Electronics
Arrow Electronics is a global provider of products, services, and solutions to the electronic component and computer product industries

It serves as a supply channel partner for more than 900 suppliers and 125,000 original equipment manufacturers, commercial customers through a global network of 310 locations in 51 countries and territories.

W.W. Grainger is the leading supplier of facilities maintenance products that help 1.8 million businesses and institutions stay up and running The distribution centers are linked by satellite network, which has reduced customerresponse time and boosted sales

Retailing includes all the activities in selling goods or services directly to final consumers for personal,nonbusiness use. A retailer or retail store is any business enterprise whose sales volume comes primarily from retailing.

Different formats of store retailers will have different competitive and price dynamics. Discount stores, for example, compete much more intensely with each other than other formats

STORE RETAILERS

Self-service Self-selection Limited service Full service

Specialty Stores Department Stores Supermarkets

Convenience Stores
Drug Store Discount Stores

Off-price retailer

Wal-Mart, one of the most successful retailers in the world, was known for its low prices, which it achieved through its sourcing and supply chain efficiencies It did not allow FDI in multi-brand retailing (the category Wal-Mart would fall into). Other foreign multi-brand retailers like Metro AG (Metro), Shoprite Holdings (Shoprite) and Marks & Spencer Plc had started operations in India either as cash and carry outlets or with franchisees.