Skip to main content
SpringerLink
Log in

Distribution and Supply Chain Management

  • Chapter
  • First Online:
Marketing Management

Part of the book series: Springer Texts in Business and Economics ((STBE))

  • 6263 Accesses

Abstract

Distribution comprises channels and supply chain management. Channels deal with institutional linkages such as retailers and wholesalers, whereas supply chain management addresses the processes underlying these linkages, such as warehousing, transportation, and inventory management, and connects them from the supplier to the end user. The objective of both components is to provide a high level of customer service at a manageable cost.

Distribution channels take on various functions of the manufacturers because they can perform them more efficiently. Depending on the type of product and type of consumer, they can range from the zero level, where the contact between manufacturer and end user is direct, to multiple levels, from producer to wholesalers and retailers. The choice of channel is an important one because it has major strategic implications and is difficult to change. Within the channel choice, decisions also need to be made about channel compensation and control. To a large degree, effective channel management depends on close information linkages. The use of information analysis at the retail level increasingly makes other channel members dependent on these information sources. Overall, channel members need to add value to the distribution process—or be eliminated. This also applies to the purchasing process, which is an integral part of distribution, albeit an internally focused one.

Supply chain management benefits from a systems view of corporate activity and includes the development of close relationships with both suppliers and customers. Effective coordination between parties reduces cost and provides for competitive advantage through approaches such as just-in-time (JIT) delivery, electronic data interchange (EDI), and early supplier involvement (ESI). Production, transportation, facility, inventory, and communication decisions are the key areas within logistics, all of which require trade-offs and collaborative action among participants. Even though the optimizing activities of a firm provide for some benefits, competitive differentiation occurs mainly through coordination with other companies.

The firm may evaluate transportation based on transit time, reliability, and cost and achieve operational improvements, but a strategic collaborative approach with customers and suppliers can deliver even greater benefits. Such collaboration can include the use of third-party logistics providers. Logistics can also play a major role in making the firm more environmentally responsive by designing reverse distribution systems for the recycling of merchandise and by devising distribution processes that minimize risk and damage to the environment.

All channel and supply chain efforts are designed to increase customer service. The intent is to delight the customer. It is therefore important to understand the importance of customer complaints. Such complaints should be encouraged so that the firm learns early on about potential problem areas. In addition, they need to be resolved quickly so that customers are willing to return. Good customer service requires the orientation and commitment of the entire corporate culture so that the customer notices at each point of contact with the firm that customer service thinking is a part of the organization.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 109.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 139.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Baker, M. J. (2014). Marketing strategy and management (5th ed.). New York: Red Globe Press.

    Book  Google Scholar 

  2. Greenspan, A. (1999). As quoted in “Fed chief indicates belief in sustainability of economic growth”. Washington Post, p. A15.

    Google Scholar 

  3. Burke, R. (1997). Marketing in the 21st century: Do you see what I see? The future of virtual shopping. Journal of the Academy of Marketing Science, 25, 352–360.

    Google Scholar 

  4. “Cisco@speed,” Economist. (1999, June 26). Special Survey, p. 12.

    Google Scholar 

  5. Lancaster, G., & Massingham, L. (2010). Essentials of marketing (Paperback ed.). Abingdon: Routledge.

    Book  Google Scholar 

  6. Sheth, J. N., & Sisodia, R. S. (1999). Revisiting marketing’s lawlike generalizations. Journal of the Academy of Marketing Science, 27(1), 71–87.

    Article  Google Scholar 

  7. Frazier, G. L. (1999). Organizing and managing channels of distribution. Journal of the Academy of Marketing Science, 27(2), 226–240.

    Article  Google Scholar 

  8. Kotier, K. (2016). Marketing management (15th ed.). Upper Saddle River: Prentice Hall.

    Google Scholar 

  9. Walmart. (2020). Walmart releases 2020 annual report and proxy statement. Walmart. https://corporate.walmart.com/newsroom/2020/04/23/walmart-releases-2020-annual-report-and-proxy-statement#:~:text=About%20Walmart&text=With%20fiscal%20year%202020%20revenue,over%202.2%20million%20associates%20worldwide. Accessed 31 July 2020.

  10. Lusch, R. F., & Lusch, V. N. (1999). Principles of marketing. Boston: Kent.

    Google Scholar 

  11. Czinkota, M. R., Geisbauer, H., & Springer, R. (1997). A perspective of marketing in Central and Eastern Europe. The International Executive, 39(6), 831–848.

    Article  Google Scholar 

  12. Mazareanu, E. (2020). Number of franchise establishments in the U.S. 2007–2020. Statista. https://www.statista.com/statistics/190313/estimated-number-of-us-franchise-establishments-since-2007/#:~:text=In%202019%2C%20the%20economic%20output,worked%20for%20a%20franchise%20business. Accessed 31 July 2020.

  13. Buse, D. D. (1999). New dynamics for a new era. Nation’s Business, p. 45.

    Google Scholar 

  14. Hughes, A. (1999). Catalog firm likely to post most profits—Internet helps firms cut costs, gain customers in the recent quarter. Wall Street Journal. www.wsj.com.

  15. Buzzell, R. D., & Ortmeyer, G. (1994). Channel partnerships: A new approach to streamlining distribution. Cambridge: Marketing Science Institute, Report 19–104, 6.

    Google Scholar 

  16. Kotabe, M. (1992). Global sourcing strategy (p. 25). New York: Quorum.

    Google Scholar 

  17. Ponprasert, S. (1999). IBM Thailand Bags ISO 9002 Certification. The Nation [Thailand]. Technology section.

    Google Scholar 

  18. Czinkota, M. R., Ronkainen, I. A., & Moffett, M. H. (2003). International business, update 2003 (p. 390). Mason: Thomson-South-Western.

    Google Scholar 

  19. Davis, T. (1993). Effective supply chain management. Sloan Management Review, pp. 35–45.

    Google Scholar 

  20. Coopers and Lybrand Management Consulting. (1995). The value chain analysis. London: Efficient Consumer Response Europe.

    Google Scholar 

  21. Williams, R. R. (1981). International physical distribution management. In J. C. Johnson & D. F. Woods (Eds.), Contemporary physical distribution and logistics (10th ed., p. 150). Tulsa: Penwell Books.

    Google Scholar 

  22. LaLonde, B., Tan, K. H., & Standing, M. (1994). Forget supply chains, think of value flows. Transformation, 3, 24–31.

    Google Scholar 

  23. Wintermyer, P. (1999, July 19). EDI Saves partners cost and time. Electronic Buyer’s News, p. 46.

    Google Scholar 

  24. Andraski, J. C., & Novack, R. A. (1996). Marketing logistics value: Managing the 5 P’s. Journal of Business Logistics, 17(1), 23–34.

    Google Scholar 

  25. Blishchok, T. J. (1994). Supply chain reinvention. In AT&T Global information solutions. New York: AT&T.

    Google Scholar 

  26. Czinkota, M. R. (1996, April 4). GM Strike requires new industrial covenant. Chicago Tribune, p. 27.

    Google Scholar 

  27. Czinkota, M. R., Ronkainen, I. A., & Moffett, M. H. (2011). International business (pp. 556–557). Danvers: John Wiley & Sons, Inc..

    Google Scholar 

  28. CocaCola Australia. (2020). What bottles and cans can be recycled for money?https://www.coca-colacompany.com/au/faqs/what-bottles-and-cans-can-be-recycled-for-money#:~:text=recycled%20for%20money%3F-,What%20bottles%20and%20cans%20can%20be%20recycled%20for%20money%3F,and%20has%20great%20recycling%20potential. Accessed 3 Aug 2020.

  29. Wu, H. J., & Dunn, S. C. (1995). Environmentally responsible logistics systems. International Journal of Physical Distribution and Logistics Management, 2, 20–38.

    Article  Google Scholar 

  30. DHL. (2020). Our GoGreen environmental protection program: Mission 2050: Zero emissions. DHL. https://www.dpdhl.com/en/responsibility/environment-and-solutions/gogreen-program.html. Accessed 3 Aug 2020.

  31. Sharma, A., Grewal, D., & Levy, M. (1995). The customer satisfaction/logistics interface. Journal of Business Logistics, 16(2), 1–21.

    Google Scholar 

  32. Stephen, T., Brown, S., & Chandrashekran, M. (1998). Customer evaluations of service complaint experiences: Implications for relationship marketing. Journal of Marketing, 62, 60–76.

    Article  Google Scholar 

  33. Strauss, B., & Seidel, W. (2002). Beschwerdemanagement. Munich: Hanser.

    Google Scholar 

  34. Hart, C. W. L., Heskett, J. L., & Sasser, W. E., Jr. (1990). The profitable art of service recovery. Harvard Business Review, 68(4), 148–157.

    Google Scholar 

  35. Gates, B. (1999). Business @ The speed of thought (pp. 201–205). New York: Warner Books; “About Us,” Jiffy Lube. Accessed online July 2004. www.jiffylube.com/company/AboutUs.aspx.

    Google Scholar 

  36. Li, T., & Calantone, R. J. (1998). The impact of market knowledge competence on new product advantage: Conceptualization and empirical examination. Journal of Marketing, 62, 13–29.

    Article  Google Scholar 

  37. Albrecht, K., & Zemke, R. (1990). Service America. Harvard Business Review, 68, 148–157.

    Google Scholar 

  38. Anderson, E. W., Fornell, C., & Lehman, D. R. (1994). Customer satisfaction, market share, and profitability: Findings from Sweden. Journal of Marketing, 58, 53–66.

    Article  Google Scholar 

  39. Stauss, B., & Seidel, W. (2005). Complaint management. Cincinnati: Southwestern.

    Google Scholar 

  40. Reichheld, F. F., & Sasser, W. E. (1990). Zero defections: Quality comes to services. Harvard Business Review, 68, 105–111.

    Google Scholar 

  41. Brown, S. W. (1997). Service recovery through IT. Marketing Management, 25–26.

    Google Scholar 

  42. Gurley, W. (1999, September 8). Why online distributors—Once written off—May thrive. Fortune, pp. 270–271.

    Google Scholar 

  43. Muller, J. (1999, August 2). Labor could back this GM spin off. Fortune, pp. 62–63.

    Google Scholar 

  44. Munk, N. (1999, June 21). Title fight. Fortune, pp. 86–94.

    Google Scholar 

  45. Brooker, K. (1999, August 16). E-rivals seem to have home depot awfully nervous. Fortune, pp. 28–29; Balu, R. (1999). Stocks the all-stars favor now: Retail specialty. Wall Street Journal, R13.

    Google Scholar 

  46. Sellers, P. (1999, June 19). Crunch time for coke. Fortune, pp. 72–78.

    Google Scholar 

Further Reading

  • Abbey, J. D., Kleber, R., Souza, G. C., & Voigt, G. (2019). Remanufacturing and consumers’ risky choices: Behavioral modelling and the role of ambiguity aversion. Journal of Operations Management, 65(1), 4–21.

    Article  Google Scholar 

  • Akturk, M. S., Ketzenberg, M., & Heim, G. R. (2018). Assessing impacts of introducing ship-to-store service on sales and returns in omnichannel retailing: A data analytics study. Journal of Operations Management, 61(1), 15–45.

    Article  Google Scholar 

  • Ballou, R. (2003). Business logistics management (5th ed.). Upper Saddle River: Prentice Hall.

    Google Scholar 

  • Bastl, M., Johnson, M., & Finne, M. (2019). A mid-range theory of control and coordination in service triads. Journal of Supply Chain Management, 55(1), 21–47.

    Article  Google Scholar 

  • Burt, D., Dobler, D., & Starling, S. (2002). World class supply management: The key to supply chain management with cases. New York: McGraw-Hill.

    Google Scholar 

  • Christopher, M., & Peck, H. (2003). Marketing logistics: Customer service & supply chain strategy. Burlington: Butterworth-Heinemann Press.

    Google Scholar 

  • Craighead, C. W., Ketchen, D. J., Jr., Jenkins, M. T., & Holcomb, M. C. (2017). A supply chain perspective on strategic foothold moves in emerging markets. Journal of Supply Chain Management, 53(4), 3–12.

    Article  Google Scholar 

  • David, F. R. (2016). Introduction to e-supply chain management: Engaging technology to build market-winning business partnerships (Kindle ed.). Saint Lucie: Saint Lucie Press.

    Google Scholar 

  • Ding, X. D., Peng, X. D., Heim, G. R., & Jordan, V. S. (2020). Service mix, market competition, and cost efficiency: A longitudinal study of U.S. hospitals. Journal of Operations Management, 66(1–2), 176–198.

    Article  Google Scholar 

  • Gualandris, J., & Klassen, R. D. (2018). Emerging discourse incubator: Delivering transformational change: Aligning supply chains and stakeholders in non-governmental organizations. Journal of Supply Chain Management, 54(2), 34–48.

    Article  Google Scholar 

  • Gundlach, G. T., Frankel, R., & Krotz, R. T. (2019). Competition policy and antitrust law: Implications of developments in supply chain management. Journal of Supply Chain Management, 55(2), 47–67.

    Article  Google Scholar 

  • Hasan, R., Moore, M., & Handfield, R. (2020). Addressing social issues in commodity markets: Using cost modelling as an enabler of public policy in the Bangladeshi apparel industry. Journal of Supply Chain Management. https://doi.org/10.1111/jscm.12228.

  • Kim, Y. H. (2017). The effects of major customer networks on supplier profitability. Journal of Supply Chain Management, 53(1), 26–40.

    Article  Google Scholar 

  • Lanier, D., Jr., Wempe, W. F., & Swink, M. (2019). Supply chain power and real earnings management: Stock market perceptions, financial effects, and implications for suppliers. Journal of Supply Chain Management, 55, 48–70.

    Article  Google Scholar 

  • Massimino, B., & Lawrence, B. (2019). Supersize me? Franchisee size and voluntary compliance with corporate brand-building initiatives. Journal of Operations Management, 65(7), 659–684.

    Article  Google Scholar 

  • Michael, H. (2011). Essentials of supply chain management (3rd ed.). Hoboken: John Wiley & Sons.

    Google Scholar 

  • Murphy, P. R., Jr., & Donald, W. (2015). Contemporary logistics: Global edition (11th ed.). Upper Saddle River: Prentice Hall.

    Google Scholar 

  • Pullman, M., Longoni, A., & Luzzini, D. (2018). Emerging discourse incubator: The roles of institutional complexity and hybridity in social impact supply chain management. Journal of Supply Chain Management, 54(2), 3–20.

    Article  Google Scholar 

  • Schmidt, C. G., Foerstl, K., & Schaltenbrand, B. (2017). The supply chain position paradox: Green practices and firm performance. Journal of Supply Chain Management, 53(1), 3–25.

    Article  Google Scholar 

  • Schmidt, C. G., Wuttke, D. A., Ball, G. P., & Heese, H. S. (2020). Does social media elevate supply chain importance? An empirical examination of supply chain glitches, Twitter reactions, and stock market returns. Journal of Operations Management.https://doi.org/10.1002/joom.1087.

  • Steven, A. B., & Britto, R. A. (2016). Emerging market presence, inventory, and product recal linkages. Journal of Operations Management, 46(1), 55–68.

    Article  Google Scholar 

  • Stolze, H. J., Mollenkopf, D. A., Thornton, L., Brusco, M. J., & Flint, D. J. (2018). Supply chain and marketing integration: Tension in frontline social networks. Journal of Supply Chain Management, 54(3), 3–21.

    Article  Google Scholar 

  • Wang, J. J., Li, J. J., & Chang, J. (2016). Product co-development in an emerging market: The role of buyer-supplier compatibility and institutional environment. Journal of Operations Management, 46(1), 69–83.

    Article  Google Scholar 

  • Waters, D. (2003). Global logistics and distribution planning: Strategies for management. London: Kogan Page.

    Google Scholar 

  • Xiao, C., Wilhelm, M., van der Vaart, T., & van Donk, D. P. (2019). Inside the buying firm: Exploring responses to paradoxical tensions in sustainable supply chain management. Journal of Supply Chain Management, 55(1), 3–20.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Graduate School and McDonough School, Georgetown University, Washington, DC, USA

    Michael R. Czinkota

  2. International Business and Strategy, University of Kent, Canterbury, UK

    Michael R. Czinkota

  3. Professor of Marketing and International Business, Waseda University, Tokyo, Japan

    Masaaki Kotabe

  4. University of Hawaii at Manoa, Honolulu, USA

    Masaaki Kotabe

  5. Professor of Strategic Marketing Management, Vice Rector for Faculty and Research, University of Nicosia, Nicosia, Cyprus

    Demetris Vrontis

  6. Senior Lecturer in Marketing, Newcastle Business School, Northumbria University, Newcastle upon Tyne, UK

    S. M. Riad Shams

Authors
  1. Michael R. Czinkota
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Masaaki Kotabe
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Demetris Vrontis
    View author publications

    You can also search for this author in PubMed Google Scholar

  4. S. M. Riad Shams
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Michael R. Czinkota .

Rights and permissions

Reprints and permissions

Copyright information

© 2021 Springer Nature Switzerland AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Czinkota, M.R., Kotabe, M., Vrontis, D., Shams, S.M.R. (2021). Distribution and Supply Chain Management. In: Marketing Management. Springer Texts in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-66916-4_11

Download citation

Publish with us

Policies and ethics

Search

Navigation