CHANNEL STRUCTURE

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 Supply Chain Management
The Management Of Upstream And Downstream
Relationship With Supplier And Customers To
Deliver Superior Customer Value At Least Cost

Linkage Coordination
Channel Relationship
Structure Management

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 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

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 Why ?

Demand Side Supply Side

Facilitation of Search Routinization of Transaction
Adjustment of Assortment Reduction in number of
Discrepancy contracts

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 Intermediary
Any channel member other than the
manufacturer or end-user

Wholesale
Retail
Specialized
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 Function
Mengatasi Kesenjangan (Gap )
. Waktu (Time)
. Tempat (Place )
. Kepemilikan (Ownership)

Perantara(Intermediary)

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Function of Intermediary

1. Informasi
2. Promosi
3. Kontak
4. Penyesuaian
5. Negosiasi
6. Transaksi
. Distribusi Fisik
. Dukungan Keuangan
. Resiko
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 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
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Generic Distribution Channel

MANUFACTURER

WHOLESALERS
FARM
AND
RAW
MATERIAL RETAILER

CONSUMERS

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Manufacturer Based Channel
Format
• Manufacturer Direct
• Manufacturer Owned Full Service Wholesale-
Distributor
• Company Store-Manufacturer Outlet
• License
• Consignment-Locker Stock
• Broker

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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
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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
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 Retailer
Retailing consists of the activities involved in
selling goods and services to ultimate
consumers for personal consumption

Demand Side Positioning Financial and Cost Side

Bulk-Breaking Margin
Spatial Convenience Inventory Turn Over
Waiting & Delivery Time GMROI
Product Variety GMROS
Customer Service Possibility GMROL
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 Taxonomy of Retailer Types
Type Main Bulk Spatial Waiting & Variety Assortment
Focus Breaking Convenience Delivery Breadth Depth
Dept Store Margin Yes Moderate Low Broad Moderate
Spec Store Margin Yes Moderate Low Narrow Deep
Mail Margin Yes Extremely Moderate- Narrow Moderate
Order High High
Convenience Both Yes Very High Low Broad Shallow
Store
Category Turn Yes Low Low Narrow Deep
Killer Over
Mass Turn Yes Low Moderate Broad Shallow
Merchand. Over
Hyper- Turn Yes Low Moderate Broad Moderate
Market Over
Warehouse Turn No Low Moderate Broad hallow
Club Over
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Objectives of Trade Deals for Non Durable Goods
Tactics Objectives
1 2 3 4 5 6
Off Invoice X X X X X
Bill-Back X X X X X
Free Goods X X
Cooperative Adv. X X X
Display Allowance X X
Sales Drives X X
Slotting Allowance X X
Street Money 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”
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 Non Retailing

Remove the need to travel

Distributor comes to consumer

Catalog Retailing Direct Selling

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 Direct Selling
The sales of a consumer product or service
in a face to face manner away from a
fixed retail location

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 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

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 Wholesaling
Business establishment that do not sell
products to a significant degree to
ultimate household consumers, but sell
products primarily to to other businesses

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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

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Distribution Cannel For Consumer
Good

Manufacture Consumer

Manufacture Retailer Consumer

Manufacture Wholesaler Retailer Consumer

Jobber

Manufacture Wholesaler Retailer Consumer

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 Distribution Channel for
Industrial Good

Manufacture Consumer

Manufacture DISTRIBUTOR Consumer

Representative
Manufacture Consumer
Branch

Representative
Manufacture
Branch
DISTRIBUTOR Consumer
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Distribution Channel Based on
Organizational Arrangement

1. Conventional

2. Vertical

3. Horizontal

4. Mix
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 1. Conventional

Terdiri Atas Satu Atau Beberapa Perantara

Yang Bersifat Independen Dan Merupakan
Bisnis Tersendiri

Manufacture GROSIR Retailer Consumer

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 2. Vertical Marketing System

Terdiri Atas Satu Atau Beberapa Perantara

Yang Bersifat Dependen Dan Merupakan
Bisnis Terpadu

Manufacture
Wholesaler
Retailer

Consumer
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 Type of VMS

VMS Corporation
Didasarkan Atas Kepemilikan

2. VMS Contract
Didasarkan Atas Kontrak/perjanjian

3. VMS Coordinative
Didasarkan Atas Kerjasama

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 4. Mix

Bila Perusahaan Menggunakan Dua Atau

Lebih Sitem Saluran Distribusi Sesuai
Dengan Segmentasi Konsumennya

KATALOG, EMAIIL, DSB

CONSUMER 1

Manufacturer Retailer CONSUMER 2

DISTRIBUTOR AGENCY CONSUMER 3

ARMADA PENJUAL CONSUMER 4

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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

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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

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 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

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Specialized Channel Participant
A Business That Participates In Channel
Relationships By Performing Essential Services
For Primary Participant Or A Fee

Functional Support
- Transportation - Financial
- Warehousing - Informational
- Assembly - Advertising
- Fulfillment - Insurance
- Sequencing - Advisory
- Merchandizing - Arranger

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 Economics Of Distribution

Foundation For Developing A Successful

Channel Arrangement

Specialization Assortment

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 Specialization

• The Ability To Superiority Perform A

Specific Function
• Specialization Is Based On Economics Of
Scale, Scope And Expertise

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 Assortment
• Process Of Creating And Positioning A
Mix Of Products Desired By Customer

• Consists Of Sorting And Configuring A Variety

Of Products And Commodities To Satisfy
Exact Buyer Requirements

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 Assortment
Process Of Creating And
Positioning A Mix Of Products
Desired By Customer Through
1. Concentration
2. Customization
3. Dispersion

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 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

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 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

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 3. Dispersion

Shipping Unique Assortment To

Customer When And Where
Specified

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 Rancangan Saluran
Distribusi

1. Analisis Kebutuhan Pelayanan

2. Menetapkan Sasaran
3. Mengembangkan Alternatif Saluran
4. Evaluasi Alternatif Saluran
5. Rancangan Implementasi

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 Analisis Kebutuhan
Pelayanan

1. Identify The Key Component Of

Customer Service
2. Establish The Relative
Importance Service
Components
3. Identify Cluster Of Customer

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Setting Priority
CUSTOMER
A B C

KEY A

P
R
B
O
D
U
C
T
C

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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
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3. Mengembangkan Alternatif
Saluran

• Tipe Perantara
• Jumlah Perantara
• Peran Dan Fungsi Perantara

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4. Evaluasi Alternative

• Kriteria Ekonomi
• Kriteria Pelayanan
• Kriteria Pengendalian

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