Instructor Manual
Lamb/Hair/McDaniel, MKTG 13E, 9780357127810; Chapter 13: Supply Chain Management and
Marketing Channels
Table of Contents
Purpose and Perspective of the Chapter …………………………………………………………………………. 2
Cengage Supplements …………………………………………………………………………………………………… 2
Learning Outcomes ……………………………………………………………………………………………………….. 2
Complete List of Chapter Activities and Assessments ……………………………………………………… 3
Key Terms ……………………………………………………………………………………………………………………… 5
What’s New in This Chapter ……………………………………………………………………………………………. 9
Chapter Outline …………………………………………………………………………………………………………… 10
Discussion Questions …………………………………………………………………………………………………… 25
Additional Activities and Assignments …………………………………………………………………………… 27
Additional Resources ……………………………………………………………………………………………………. 32
External Videos or Playlist ……………………………………………………………………………………………………….. 32
Appendix …………………………………………………………………………………………………………………….. 33
Generic Rubrics ……………………………………………………………………………………………………………………… 33
Standard Writing Rubric …………………………..……………………………………………………………………………… 33
Standard Discussion Rubric ……………………………………………………………………………………………………… 34
Purpose and Perspective of the Chapter
The purpose of this chapter is to convey the benefits of supply chain management,
including reduced inventory, transportation, warehousing, and packaging costs; greater
supply chain flexibility; improved customer service; and higher revenues. Key processes
that leading supply chain companies focus on are (1) customer relationship management,
retail interfaces.
Cengage Supplements
The following product-level supplements provide additional information that may help you
in preparing your course. They are available in the Instructor Resource Center.
• Transition Guide (provides information about what’s new from edition to edition)
• Educator’s Guide (describes assets in the platform with a detailed breakdown of
activities by chapter with seat time)
Learning Outcomes
The following learning outcomes are addressed in this chapter:
13-1 Define the terms supply chain and supply chain management, and discuss the
benefits of supply chain management
13-2 Discuss the concepts of internal and external supply chain integration and explain
why each of these types of integration is important
13-3 Identify the eight key processes of excellent supply chain management, and discuss
how each of these processes affects the end customer
13-4 Understand the importance of sustainable supply chain management to modern
business operations
Complete List of Chapter Activities and Assessments
For additional guidance refer to the Teaching Online Guide.
Chapter
Learning
Objective
PPT slide
Activity/Assessment
Duration
Certification
Standard
N/A
MindTap: Why Does
Supply Chain
Management Matter to
Me?
DISC: Customer
Supply Chains and
Supply Chain
Management
Analytic
Distribution
MindTap: Learn It 13-2:
Supply Chain Integration
5 minutes
BUSPROG:
Analytic
Distribution
5 minutes
BUSPROG:
Reflective
Thinking
13-3
MindTap: Learn It 13-3:
The Key Processes of
Supply Chain
Management
5 minutes
BUSPROG:
Analytic
DISC:
Distribution
13-4
MindTap: Learn It 13-4:
Sustainable Supply Chain
Management
5 minutes
BUSPROG:
Analytic
DISC:
Distribution
13-8
MindTap: Learn It 13-8:
Omnichannel Versus
Multichannel Marketing
5 minutes
BUSPROG:
Analytic
DISC: Strategy
13–1 – 13–
8
MindTap: Assignment
25 minutes
BUSPROG:
Analytic
DISC:
Marketing Plan
13–1 – 13–
8
MindTap: Case Activity
15 minutes
BUSPROG:
Analytic
DISC: Strategy
DISC:
Distribution
13-6
48
Knowledge Check 3 in
PPT
5 minutes
BUSPROG:
Analytic
DISC:
DISC:
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Key Terms
advanced robotics: devices that act largely or partially autonomously, that interact
physically with people or their environment, and that are capable of modifying their
behavior based on sensor data.
agents and brokers: wholesaling intermediaries who do not take title to a product, but
facilitate its sale from producer to end user by representing retailers, wholesalers, or
manufacturers.
blockchain: a digital ledger in which transactions are made and recorded chronologically
and publicly.
business processes: bundles of interconnected activities that stretch across firms in the
supply chain.
channel members: all parties in the marketing channel who negotiate with one another,
buy and sell products, and facilitate the change of ownership between buyer and seller in
the course of moving the product from the manufacturer into the hands of the final
consumer.
customer relationship management (CRM) process: allows companies to prioritize their
marketing focus on different customer groups according to each group’s long-term value to
the company or supply chain.
customer service management process: presents a multicompany, unified response
system to the customer whenever complaints, concerns, questions, or comments are
voiced.
digitalization: the use of digital technologies to change a business model and provide new
revenue or value.
direct channel: a distribution channel in which producers sell directly to consumers.
drones: unmanned aerial vehicles that can be controlled remotely or can fly autonomously
gray marketing channels: secondary channels that are unintended to be used by the
producer, and which often flow illegally obtained or counterfeit product toward customers.
greenwashing: when a firm publicly feigns support for environmental or social
sustainability but fails to live up to these standards in practice.
manufacturing flow management process: process concerned with ensuring that firms
in the supply chain have the needed resources to manufacture with flexibility and to move
products through a multistage production process.
marketing channel (channel of distribution): a set of interdependent organizations that
eases the transfer of ownership as products move from producer to business user or
consumer.
order cycle time: the time delay between the placement of a customer’s order and the
customer’s receipt of that order.
order fulfillment process: a highly integrated process, often requiring persons from
multiple companies and multiple functions to come together and coordinate to create
customer satisfaction at a given place and time.
reshoring: the reinstitutionalization of a business process from an outsource
location/country back to the original location for the purpose of gaining economic
advantage.
retailer: a channel intermediary that sells mainly to consumers.
returns management process: enables firms to manage volumes of returned product
efficiently while minimizing returns- related costs and maximizing the value of the returned
assets to the firms in the supply chain.
selective distribution: a form of distribution achieved by screening dealers to eliminate all
but a few in any single area.
strategic channel alliance: a cooperative agreement between business firms to use the
other’s already established distribution channel.
supplier relationship management process: supports manufacturing flow by identifying
and maintaining relationships with highly valued suppliers.
supply chain orientation: a system of management practices that are consistent with a
“systems thinking” approach.
supply chain traceability: the degree to which a business is able to track a product’s
development through stages beginning with a raw material state and ending with delivery
to the final consumer.
supply chain: the connected chain of all of the business entities, both internal and external
to the company, that perform or support the logistics function.
triple bottom line: the financial, social, and environmental effects of a firm’s policies and
actions that determine its viability as a sustainable organization.
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What’s New in This Chapter
The following elements are improvements in this chapter from the previous edition:
• New content on supply chain management teams
• New content on outsourcing and reshoring
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Chapter Outline
In the outline below, each element includes references (in parentheses) to related content. “LO
CH–##” refers to the chapter learning outcome; “PPT Slide #” refers to the slide number in the
PowerPoint deck for this chapter (provided in the PowerPoints section of the Instructor Resource
Center); and, as applicable for each discipline, accreditation or certification standards (“DISC”).
Introduce Chapter 13 and review the learning outcomes. (PPT Slide 2).
1. Supply Chains and Supply Chain Management (LO 13-1, PPT Slide 3, DISC:
Distribution)
a. Effective supply chain management can create a competitive advantage. A
supply chain refers to the connected chain of all of the business entities, both
internal and external to the company, that perform or support the logistics
“pulled” into the marketplace by customers. Organizations partner with
members of their supply chain to enhance customer value. When performed
well, SCM reflects a completely customer-driven management philosophy.
c. Today’s firms often strive for supply chain agility, which is an operational
strategy focused on creating inventory velocity and operational flexibility
simultaneously in the supply chain. Agile companies:
• Synchronize their activities by sharing supply-and-demand market
information
Example: To remain efficient while maximizing customer satisfaction, Zara, a
“fast fashion” industry leader, employs regular, small-batch deliveries to all of
d. Effective SCM requires a team effort between a firm and its partners.
Outsourcing (contract logistics) involves a manufacturer’s or supplier’s use of
an independent third party to manage an entire function of the logistics system,
e. Instead of looking around the world for low-cost logistic partners, many
companies are now looking for partners within or close to their primary base of
activity from a distant to a nearby country.
f. Benefits of Effective Supply Chain Management: Organizations that focus on
supply chain management commonly report:
• Lower inventory, transportation, warehousing, and packaging costs
• Higher revenues
g. Research has shown a clear relationship between supply chain performance and
both profitability and company value.
Example: Walmart uses strategic partnerships with suppliers, advanced inventory
technologies, and state-of-the-art network design processes to stay
competitive—all while providing consumers with thousands of their basic needs
2. Supply Chain Integration (LO 13-2, PPT Slide 12, DISC: Distribution)
a. A key principle of supply chain management is that multiple entities (firms
and/or their functional areas) should work together to perform tasks as a single,
thinking” approach. There are five common characteristics of supply chain−
oriented organizations:
• They are credible.
b. Supply chain integration occurs when multiple firms or business functions in a
supply chain coordinate their activities and processes so that they are
seamlessly linked to one another in an effort to satisfy the customer. In modern
supply chain systems, integration can be either internal or external to a specific
c. In addition to being internally integrated, five types of external integration are
sought by firms who want to provide top-level service to customers:
• Relationship integration is the ability of two or more companies to develop
social connections that serve to guide their interactions when working
together. Firms must develop ways to collaborate on activities to provide the
maximum amount of value to customers.
3. The Key Processes of Supply Chain Management (LO 13-3, PPT Slide 18, DISC:
Distribution)
a. Integration is “how” excellent supply chain management works. The business
processes on which the linked firms work together represent the “what” of
supply chain management—they are what the firms, departments, areas, and
people focus on when working together to reduce supply chain costs or to
generate additional revenues. Business processes are composed of bundles of
interconnected activities that stretch across firms in the supply chain. Eight
critical business processes on which supply chain managers must focus include:
• Customer relationship management
• Customer service management
b. Customer Relationship Management: The customer relationship
management (CRM) process allows companies to prioritize their marketing
focus on different customer groups according to each group’s long-term value to
c. Customer Service Management: The customer service management
process presents a multicompany, unified response system to the customer
d. Demand Management: The demand management process seeks to align
supply and demand throughout the supply chain by anticipating customer
e. Sales and operations planning (S&OP) is a method companies use to align
production with demand by merging tactical and strategic planning methods
f. Order Fulfillment: The order fulfillment process involves generating, filling,
delivering, and providing on-the-spot service for customer orders. The order
fulfillment process is a highly integrated process, often requiring persons from
g. Manufacturing Flow Management: The manufacturing flow management
process is concerned with ensuring that firms in the supply chain have the
needed resources to manufacture with flexibility and to move products through
h. Depending on the product, supply chain managers may choose between a lean
i. Supplier Relationship Management: The supplier relationship management
process supports manufacturing flow by identifying and maintaining
j. Product Development and Commercialization: The product development
and commercialization process includes the group of activities that facilitates
the joint development and marketing of new offerings among a group of supply
k. Returns Management: The returns management process enables firms to
manage volumes of returned product efficiently while minimizing returns–
related costs and maximizing the value of the returned assets to the firms in the
supply chain. In addition to the value of managing returns from a pure asset-
recovery perspective, many firms are discovering that returns management also
4. Sustainable Supply Chain Management (LO 13-4, PPT Slide 30, DISC: Distribution)
a. Sustainable supply chain management is a philosophy that embraces the
need for optimizing social and environmental costs in addition to financial costs
b. Businesses are balancing economic success with social sustainability practices
like human rights, labor rights, employee-diversity initiatives, and quality-of-life
concerns. Research has demonstrated a strong business case supporting many
Example: UPS works continuously to develop a more sustainable supply chain. By
integrating new transportation technologies into its fulfillment networks, UPS
mechanics and employees are able to facilitate package delivery in ways that are
5. The Digitalization of the Supply Chain (LO 13-5, PPT Slide 33, DISC:
Online/Computer)
a. Digitalization involves the use of digital technologies to change a business
model and provide new revenue or value. This is occurring throughout the
sequence of events that makes up modern SCM, including:
b. Demand sensing and decision making (via the Internet of Things, big data,
supply chain analytics, and AI/machine learning)
• Digitalized process management (via advanced robotics and cloud
c. Digitalized Demand Sensing and Decision Making: The first frontier on which
d. The increasing prevalence of sensors on products, their containers, and the
e. In many cases, data collected are so complex or unwieldy that it makes more
sense for businesses to let computers not only calculate the answers to
complicated problems, but also to sometimes ask the questions, using
technology such as:
• Artificial intelligence (AI) – the computer science area focused on making
machines that can simulate human intelligence processes
Channels
• Machine learning (ML) – an application of artificial intelligence that provides
systems the ability to automatically learn and improve from experience
without being explicitly programmed
Example: A San Francisco-based company, Atrium, aims to be a full-service
corporate law firm that leverages AI technology and analytics to streamline
f. Digitalized Supply Chain Processes: Other applications and tools useful for
executing supply process tasks, include:
• Cloud computing – the practice of using remote network servers to store,
manage, and process data
• Advanced robotics – devices that act largely or partially autonomously, that
g. Digital Distribution: Digital distribution includes any kind of product or
service that can be distributed electronically, whether over traditional forms
such as fiber-optic cable or through satellite transmission of electronic signals.
Beyond products and services composed of electronic bits and bytes of
information that are easily transferred digitally, experiments with three-
dimensional printing have been successful in a variety of industries. Three-
dimensional printing (3DP) involves the creation of three-dimensional objects