Distribution Channels and Supply Chain Management in...

Article Overview: (30%) In this chapter, the authors focus on how technology firms manage complexities of distribution channels and supply chains to successfully deliver products in high-tech market. The authors claim that effective managing distribution helps the firms to reduce redundancies and inefficiencies in their production system. Consequently, the firms can improve their alliances’ relationships (i.e., customers, suppliers, manufacturers and distributors) that increase customer satisfaction and cost advantage. However, if firms have ineffective channel strategies, conflicts between firms and their alliances can be occurred. Because they usually have different goals, they think that they cannot solve the conflicts by common†¦show more content†¦Similarly, the firms can use these plans (or â€Å"relational norms†) to share mutual benefits and improve collaborative communication among the members. Hybrid channels are introduced to help firms to increase m arket share, keep cost efficiency and reduce conflicts. The hybrid channels are also designed associated with customer relationship management (â€Å"CRM†) to hit customer demands at the right time and to facilitate customers to comfortably access the products in several ways. Moreover, there are two indicators used to evaluate whether channel performance has capabilities or not. First, quantitative indicator concentrates on sale volumes of intermediaries and the market share of manufacturers. Second, qualitative indicators evaluate channel performance based on how efficiency the collaboration between suppliers, dealers and manufacturers is. Regarding supply chains, firms should design supply chain plans to handle product demand and supply uncertainties. In addition, firms can apply technology that can be used to improve more effectively the capabilities of supply chain management. For example, firms can check their product stocks via the Internet (e.g., Online platform). To control stocks, firm can use â€Å"RFID† to automatically count the amount of products. Key Learning Points: (30%) †¢ Some people believe that direct channels can reduce prices of products.Show MoreRelatedCase Study Of Personal Computers In The U. S. Consumers861 Words   |  4 Pagesretailers to have on site tech support teams that specialize in building and customizing personal computers. The number of customizations being demanded from consumers will determine the turnaround delivery time. Giving more relatable and personal customer service to U.S. consumers will create more confidence in patronizing local retailers. 2. Does the simultaneous use of multiple sales/distributions channels (e.g., direct online sales and sales through retail stores) create a channel conflict? 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