Lecture Global marketing management (7th edition): Chapter 15 - Masaaki Kotabe, Kristiaan Helsen

Chapter global logistics and distribution. After studying this chapter you will be able to understand: The importance of derived demand in industrial markets, how demand is affected by technology levels, characteristics of an industrial product, the importance of ISO 9000 certification, the growth of business services and nuances of their marketing, the importance of trade shows in promoting industrial goods, the importance of relationship marketing for industrial products and services.

Trang 2

Chapter Overview

1 Definition of Global Logistics

2 Managing Physical Distribution

3 Managing Sourcing Strategy

4 Free Trade Zones

5 International Distribution Channel

6 International Retailing

Trang 3

• Global logistics and distribution have played a

critical role in the growth and development of world trade and in the integration of business operations

on a worldwide scale

• The use of appropriate distribution channels in

international markets increases the chances of

success dramatically

• In the United States, the total logistics cost stayed around 10 percent of the GDP from 2006 to 2008, but has moderately declined to 8.3 percent GDP in 2014

Trang 4

quantum jump in the efficiency of the logistic

methods employed by firms worldwide

Trang 5

1 Definition of Global Logistics

• Global logistics is defined as the design and

management of a system that directs and controls the flows of materials into, through, and out of the firm across national boundaries to achieve its

corporate objectives at a minimum total cost (Exhibit 15-1)

Trang 6

Exhibit 15-1

Trang 7

1 Definition of Global Logistics

 Materials management refers to the inflow of raw

materials, parts, and supplies in and through the firm

 Physical distribution refers to the movement of

the firm’s finished products to its customers,

consisting of transportation, warehousing,

inventory, customer service/order entry, and

administration

 Sourcing strategy refers to an operational link

between materials management and physical

distribution and deals with how companies

managed R&D (e.g., product development and

engineering), operations (e.g., manufacturing),

and marketing activities

Trang 8

2 Managing Physical Distribution

• The following factors contribute to the increased

complexity and cost of global logistics:

Trang 9

• Modes of Transportation—Important Factors

– Value-to Volume Ratio

Trang 10

• Warehousing and Inventory Management

– Hedging against Inflation and Exchange Rate

Fluctuations

– Benefiting from Tax Differences

– Logistical Integration and Rationalization

– E-Commerce and Logistics

Trang 11

• Third-Party Logistics (3PL) Management

– The largest 3PL sector is the value-added

warehousing and distribution industry.

• Logistical Revolution with the Internet

– The trend toward third-party logistics is a result of the Internet and the intranet as well as concentrating on core competencies.

Trang 12

3 Managing Sourcing Strategy

Companies adopt international sourcing for the

following reasons:

• Intense international competition

• Pressure to reduce costs

• The need for manufacturing flexibility

• Shorter product-development cycles

• Stringent quality standards

• Continually changing product and process

technology

• Improvement in information technology

• Reduction in investment in fixed assets

Trang 13

3 Managing Sourcing Strategy

• Procurement: Types of Sourcing Strategy (Exhibit 15-2)

– Insourcing (or In-House Sourcing)

• Outsourcing of Service Activities

– Intellectual outsourcing and software

– Core and supplementary services

Trang 14

Exhibit 15-2

Trang 15

Exhibit 15-3: Major Reasons for

Outsourcing

Trang 16

4 Free Trade Zones

• A free trade zone (FTZ) is an area that is located within a nation (say, the United States), but is

considered outside of the customs territory of the

nation

• U.S FTZs are licensed by the Foreign Trade Zone Board and operated under the supervision of the US Customs Service Presently, some 500 FTZs are in operation Across the U.S., about 420,000 jobs are directly related to activity in FTZs

Trang 17

4 Free Trade Zones

• FTZs provide many cash flow and operating

benefits to zone users (Exhibit 15-5):

1 Duty deferral and elimination

2 Lower tariff rates

3 Lower tariff incidence

4 Exchange rate hedging

5 Import quota not applicable

6 “MADE IN U.S.A.” designation

Trang 18

Exhibit 15-5: Benefits of Using a Foreign Trade Zone (FTZ) in the United States

Trang 19

5 International Distribution Channel

• Firms may reach their customers through:

– Their own local salesforce

Trang 20

Exhibit 15-6: International Distribution

Channel Alternatives

Trang 21

• Guidelines for selecting foreign intermediaries:

– Search for intermediaries capable of developing

markets, not just those with good contacts

– Regard intermediaries as long-term partners

– Actively search for and select intermediaries, not the other way around

– Support your intermediaries by committing resources

Continued

Trang 22

–Make links with national intermediaries as soon as

possible after entering a foreign market

Trang 23

meeting local competition on a daily basis

Adaptation is a key success factor

Trang 24

6 International Retailing

• In 2013, Wal-Mart was the largest retailer in the

world with a total revenues of over $476 billion Only

10 percent of its sales are generated outside its core NAFTA region, compared with Carrefour’s 20

percent of sales generated outside its core Europe region

• In general, European retailers tend to be more

willing to customize their marketing and

procurement strategies to various local market

peculiarities than U.S or Japanese retailers

Trang 25

Exhibit 15-7: International Operations of

the World’s Top 10 Retailers

Trang 26

• E-commerce and Retailing

- As online sales accelerate, traditional retailers are

increasingly recognizing e-commerce as a key

element of their global expansion strategies

- E-commerce is not limited to the developed

Trang 28

• Private-Label Brands (Store Brands)

– Appeal to price-conscious customers

– Attractive to MNCs facing well-entrenched incumbent brands in markets they plan to enter

• “Push” versus “Pull”

– The traditional supply chain powered by the

manufacturing push is becoming a demand chain

driven by consumer pull, especially in the developed countries.

Trang 29

• On-Time Retail Information Management

– Reduced Inventory

– Market Information at the Retail Level

• Strong logistics capabilities can be used as an offensive weapon to help a firm gain competitive advantage in the marketplace.

• Retailing Differences across the World

– Industrialized countries tend to have a lower

distribution outlet density than the emerging markets.

Trang 30

– The advanced facilities available in the developed

world allow a much higher square footage of retail

space per resident due to the large size of the retail outlets.

law helped to protect the small retail stores for more than 40 years until recently

– Germany (store hours limited) and China (basket

shopping behavior) support adaptation approach.

Định dạng
Số trang	30
Dung lượng	3,24 MB