1. Launch your PollEV session: Text: UWMBUSINESS to 37607 *Text LEAVE at the end of class* Alternate #: (747) 444-3548

3. “Premium Pricing”

5. “Premium Pricing” An example of competitor- based pricing

9. Some of your questions: • Is the idea of a "loss leader" related to high/low pricing? • Strategy vs. tactic • “leader pricing” – build store traffic by aggressively pricing an item (at or above the store’s cost) • “loss leader” – lowers price below store’s cost: illegal

10. Some of your questions: • Presentation: does the solution have to be a business? • Social problem  any solution; how to market it?

11. INNOVATIVE

12. Marketing strategy: so people “buy into” your solution • Who targeting? (segmentation) • Positioning? • Promotion? • Product: Branding? Innovation? • Price: how funded? • Place (if relevant)

14. P P The Third ‘P’: Supply Chain and Channel Management P P Ref: Text, chapter 16

15. “PRODUCT” (Value) Delivering value Seller Buyer VALUE

16. In this topic, we will: • Define supply chain management • Recognize the value added by the supply chain • Describe the flow of merchandise and the flow of information in the supply chain • Describe how supply chains are managed

17. LOUISIANA IDAHO IRELAND

19. Amazon! https://www.businessinsider.com/amazon-annual-filing-indicates-fedex-ups-competitors-2019-2

20. ??? • “Place,” also called supply chain management, includes all activities required to get the right product to the right customer when that customer wants it. By doing so, firms add value for customers and themselves • Getting products to customers efficiently

22. “FEWER RESOURCES” • Getting products to customers efficiently – quickly and at low cost

23. Macro strategies for developing value – chapter 2

24. “Make coca-cola available Within an arm’s reach of Desire” – Robert Woodruff, CEO, 1923

28. EDI VMI JIT Data Warehouse

31. “Make coca-cola available Within an arm’s reach of Desire”

33. Supply Chain • Manufacturers make products and sell them to retailers or wholesalers • Wholesalers are firms that buy products from manufacturers and resell them to retailers, and retailers sell products directly to consumers • Manufacturers ship to a wholesaler, or to the retailer’s distribution center

34. “Institutions” Simplified Supply Chain

36. Supply Chain: • Institutions • Transportation • Material and goods flows • Information flows • “Logistics” – transportation, warehousing, packing, handling

37. Supply Chain management: • Integrate EVERYONE involved • Into a seamless VALUE CHAIN  • Flow of INFORMATION and GOODS Is optimized to satisfy customers

38. Supply chains add value Information flows • Supply chain management streamlines distribution. • six interrelated activities emerge in supply chain management

39. Information Flow  Flow of Goods asn

40. 1. Making information flow • Flow 1 ( Customer to Store): • The sales associate scans the UPC tag on the packaging and the customer receives a receipt. • Flow 2 ( Store to Buyer): • The point-of-sale (POS) terminal records the purchase information and electronically sends it to the buyer at the corporate office • The sales information is incorporated into an inventory management system and used to monitor and analyze sales. Reorder? Price change? Promotion? • Buyers send information to stores on overall sales for the chain, how to display merchandise, upcoming promotions

41. 1. Making information flow • Flow 3 (Buyer to Manufacturer): • The purchase information from each store is aggregated by the retailer, who creates an order for new merchandise and sends it to the manufacturer • The buyer also communicates with the manufacturer about other issues: shipping dates, promotions, prices, etc. • Flow 4 (Store to Manufacturer): • In some situations, the sales transaction data are sent directly from the store to the manufacturer, and the manufacturer decides when to ship more merchandise • In other situations, the ordering process is done automatically, bypassing the buyers

42. 1. Making information flow • Flow 5 (Store to Distribution Center): • Retail stores also communicate with the distribution center to coordinate deliveries and check inventory status • When the store inventory drops to a specified level, more merchandise is shipped to the store, and shipment information is sent to the retailer computer system

43. 1. Making information flow • Flow 6 (Manufacturer to Distribution Center and Buyer): • When the manufacturer ships the merchandise to the distribution center, it sends an advance shipping notice (ASN). This is an electronic document sent by the supplier to the retailer in advance of a shipment to tell the retailer exactly what to expect in the shipment • The distribution center makes appointments for trucks to make the delivery • When shipment is received at the distribution center, the buyer is notified and authorizes payment to the vendor

46. Wal-Mart: Innovative thinking VISION: “If we work together, we’ll lower the cost of living for everyone… we’ll give the world an opportunity to see what it’s like to save and have a better life”

48. P P P P