CHANNEL STRUCTURE Andary A Munita Hanafiah Supply Chain Management The Management Of Upstream And Downstream Relationship With Supplier And Customers To Deliver Superior Customer Value At Least Cost Linkage Channel Structure Coordination Relationship Management Channel Structure Structure Of Intra company Organizational Units And Extra company Agents And Dealers, Wholesale And Retail, Through Which A Commodity, Product, Or Services Is Marketed Intermediary Any channel member other than the manufacturer or end-user Wholesale Retail Why ? Demand Side Facilitation of Search Adjustment of Assortment Discrepancy Supply Side Routinization of Transaction Reduction in number of contracts Function Mengatasi Kesenjangan (Gap ) . Waktu (Time) . Tempat (Place ) . Kepemilikan (Ownership) Perantara(Intermediary) Function of Intermediary 1. Informasi 2. Promosi 3. Kontak 4. Penyesuaian 5. Negosiasi 6. Transaksi . Distribusi Fisik . Dukungan Keuangan . Resiko What is Happen? A. ALIRAN ( Flow ) 1. Flow of Goods 2. Flow of Information 3. Flow of Money 4. Transfer of Ownership 5. Promotion B. KONFLIK ( Conflict ) 1. Horizontal 2. Vertical Generic Distribution Channel MANUFACTURER FARM AND RAW MATERIAL WHOLESALERS RETAILER CONSUMERS Manufacturer Based Channel Format • Manufacturer Direct • Manufacturer Owned Full Service WholesaleDistributor • Company Store-Manufacturer Outlet • License • Consignment-Locker Stock • Broker Retailer Based Channel Format • • • • • • • • • • • • Franchise Dealer Direct Buying Club Warehouse Club-Wholesale Club Mail Order catalog Food Retailer Department Store Mass-Merchandiser Specialty Store Specialty Discount - Category killer Convenience Store Hyper market Service Provider Based Channel Format • • • • • • • • • • • • • Contract Warehousing Sub processor Cross Docking Integration of Truck and Rail ( Inter modal ) Roller Freight Stack train and Road Railer Schedule Train Outsourcing Direct mailer Bartering Value Added Retailer Influencer - specifier Financial Service Provider Retailer Retailing consists of the activities involved in selling goods and services to ultimate consumers for personal consumption Demand Side Positioning Bulk-Breaking Spatial Convenience Waiting & Delivery Time Product Variety Customer Service Possibility Financial and Cost Side Margin Inventory Turn Over GMROI GMROS GMROL Taxonomy of Retailer Types Type Main Focus Dept Store Margin Yes Moderate Low Broad Moderate Spec Store Margin Yes Moderate Low Narrow Deep Mail Order Margin Yes Extremely High Convenience Both Store Category Killer Bulk Spatial Waiting & Variety Assortment Breaking Convenience Delivery Breadth Depth Yes Very High Moderate- Narrow High Low Broad Shallow Turn Over Yes Low Low Mass Turn Merchand. Over Yes Low Moderate Broad Shallow HyperMarket Turn Over Yes Low Moderate Broad Moderate Warehouse Turn Club Over No Low Moderate Narrow Moderate Broad Deep hallow Objectives of Trade Deals for Non Durable Goods Tactics Off Invoice Bill-Back Free Goods Cooperative Adv. Display Allowance Sales Drives Slotting Allowance Street Money 1 2 X X X X X X X X Objectives 3 4 X X X X X 5 6 X X X X X X X 1. Retailer Merchandising Activities 2. Loading The Retailer 3.Gaining or Maintaining Distribution 4. Obtain Price Reduction 5. Competitive Tool 6. Retailer”Goodwill” X X X Non Retailing Remove the need to travel Distributor comes to consumer Catalog Retailing Direct Selling Direct Selling The sales of a consumer product or service in a face to face manner away from a fixed retail location Electronic Channels Any Channel that involves using the internet as means of reaching the end user or any channel for which the consumer literally buys on-line B2C B2B Wholesaling Business establishment that do not sell products to a significant degree to ultimate household consumers, but sell products primarily to to other businesses Distribution Channel Based on Delivery Method 1. Direct Distribution Tidak Ada Perantara, Barang Dikirim Langsung Dari Produsen Ke Konsumen 2. Indirect Distribution Barang Dikirim Dari Produsen Melalui Perantara Distribution Cannel For Consumer Good Consumer Manufacture Manufacture Manufacture Wholesaler Retailer Consumer Retailer Consumer Retailer Consumer Jobber Manufacture Wholesaler Distribution Channel for Industrial Good Consumer Manufacture DISTRIBUTOR Manufacture Manufacture Representative Branch Manufacture Representative Branch Consumer Consumer DISTRIBUTOR Consumer Distribution Channel Based on Organizational Arrangement 1. Conventional 2. Vertical 3. Horizontal 4. Mix 1. Conventional Terdiri Atas Satu Atau Beberapa Perantara Yang Bersifat Independen Dan Merupakan Bisnis Tersendiri Manufacture GROSIR Retailer Consumer 2. Vertical Marketing System Terdiri Atas Satu Atau Beberapa Perantara Yang Bersifat Dependen Dan Merupakan Bisnis Terpadu Manufacture Wholesaler Retailer Consumer Type of VMS VMS Corporation Didasarkan Atas Kepemilikan 2. VMS Contract Didasarkan Atas Kontrak/perjanjian 3. VMS Coordinative Didasarkan Atas Kerjasama 4. Mix Bila Perusahaan Menggunakan Dua Atau Lebih Sitem Saluran Distribusi Sesuai Dengan Segmentasi Konsumennya KATALOG, EMAIIL, DSB Manufacturer DISTRIBUTOR ARMADA PENJUAL CONSUMER 1 Retailer CONSUMER 2 AGENCY CONSUMER 3 CONSUMER 4 C. Distribution Cannel Based on number of Participants 1. Intensive Distribution Menyediakan Produk Disebanyak Mungkin Outlet 2. Exclusive Distribution Menyediakan Produk Hanya Pada Beberapa Outlet Eksklusif 3. Selective Distribution Menyediakan Produk Hanya Pada Beberapa Outlet Selektif D. Distribution Channel Based on Function 1. Primary Channel Participant Berpartisipasi Dalam Kepemilikan Inventory Atau Resiko Finansial • • • Manufacture Wholesaler Retailer 2. Specialized Channel Participant Berpartisipasi Hanya Dalam Suatu Pelayanan Tertentu Karena Fee • Functional Specialist: Transportation, Warehousing,etc • Support Specialist: Advertising, Insurance, Etc Primary Channel Participant A Business That Is Willing To Participate In The Inventory Ownership Responsibility Or Other Significant Aspects Of Financial Risk • • Manufacturer Wholesalers (Merchant,agent) • Retailers Specialized Channel Participant A Business That Participates In Channel Relationships By Performing Essential Services For Primary Participant Or A Fee Functional - Transportation - Warehousing - Assembly - Fulfillment - Sequencing - Merchandizing Support - Financial - Informational - Advertising - Insurance - Advisory - Arranger Economics Of Distribution Foundation For Developing A Successful Channel Arrangement Specialization Assortment Specialization • The Ability To Superiority Perform A Specific Function • Specialization Is Based On Economics Of Scale, Scope And Expertise Assortment • Process Of Creating And Positioning A Mix Of Products Desired By Customer Through: 1. Concentration 2. Customization 3. Dispersion • Consists Of Sorting And Configuring A Variety Of Products And Commodities To Satisfy Exact Buyer Requirements 1. Concentration • Collection Of Large Quantities Of A Single Product Or Several Different Products So That They Can Ultimate Be Sold As A Group • Basic Principle Of Concentration Is Referred To As Minimum Total Transaction 2. Customization • Process Of Sorting And Grouping Of Product Into Unique Combinations To Satisfy A Specific Customer’s Requirements • Capability Of A Firm To Achieve Effective Customization Is The Heart Of Developing A Supply Chain Arrangement 3. Dispersion Shipping Unique Assortment To Customer When And Where Specified Rancangan Saluran Distribusi 1. Analisis Kebutuhan Pelayanan 2. Menetapkan Sasaran 3. Mengembangkan Alternatif Saluran 4. Evaluasi Alternatif Saluran 5. Rancangan Implementasi Analisis Kebutuhan Pelayanan 1. Identify The Key Component Of Customer Service 2. Establish The Relative Importance Service Components 3. Identify Cluster Of Customer 1. Menetapkan Prioritas CUSTOMER A KEY P R O D U C T B C A B C 2. Menetapkan Sasaran 1. Order Cycle Time 2. Stock Availability 3. Order Size Constraint 4. Ordering Convenience 5. Frequency Of Delivery 6. Delivery Reliability 7. Documentation Quality 8. Claims Procedure 9. Order Completeness 10. Technical Support 11. Order Status Information 3. Mengembangkan Alternatif Saluran • Tipe Perantara • Jumlah Perantara • Peran Dan Fungsi Perantara 4. Evaluasi Alternative Kriteria Ekonomi • Kriteria Pelayanan • Kriteria Pengendalian •