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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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pple INC

The main body of multi-channel distribution system is merchant middleman and agent intermediary who participates in commodity circulation process. Through these agents and intermediaries, multi-channel distribution systems can be expanded to make distribution easier.

Apple advantages first multi-channel system mode, multi-channel system model can ensure the steady growth of the company, to build multi-channel system model can make the enterprise effectively avoid risk, because in the long run, the development of each channel is going to have highs and lows. Some channels need to invest in advance and invest in large amounts, which can bring high profits to the company. Some channels, though short in length, are more influenced by the market and more volatile. Second, multi-channel system mode can improve the market coverage of multi-channel distribution system means that companies have more opportunities for direct or indirect contact with customers, and thus potential customers into fixed customers, increase market share. Thirdly, multi-channel distribution system can reduce the channel cost. With the development of science and technology, the general use of shopping and shopping on the Internet greatly reduces the channel cost of enterprises. Due to the different channels in the sales task of enterprise resources occupied different, therefore, for according to different market sales process equipped with the appropriate channels or for the same in different sales task is equipped with the proper channels, is likely to decrease the cost of the whole channel management of enterprises. Fourth, the multi-channel distribution system can meet the customers' differentiated needs, and the customers have different purchasing methods besides the preference of the products. And differentiated services provided by the multi-channel system can improve the shortcomings of customer satisfaction first, multi-channel marketing will add burden to the company. In the short term, establishing multi-channel marketing is bound to increase the investment and burden of enterprises. On the one hand, companies can increase their marketing channels when they encounter costs or the embarrassment of falling sales. On the other hand, companies will be able to lose their control over their customers and cause financial losses when they spend huge sums of money to build new channels. Second, multi-channel marketing is difficult to integrate. Multi-channel marketing may increase market coverage, but if each channel is just competing for customers, it will result in a decline in sales and a chaotic channel. Therefore, enterprises must coordinate the behaviors of different channel members when adopting multi-channel marketing strategy so as to realize the long-term development goals of enterprises. Thirdly, multi-channel marketing can cause conflicts among channel members. Channel conflict is a common phenomenon of multi-channel marketing. The reasons are mainly derived from the following aspects: firstly, the differences of the channel members' respective goals can cause channel conflicts. Generally channel members to achieve the overall goal of the organization and contribute their strength, but once the differences between individual goal and overall goal or target incompatible between channel members can produce conflict. Second, conflicts occur when channel members disagree about how to achieve the overall goals of the organization and are committed to their opinions. Finally, there will be contradictions and differences between channel members in terms of target customers, channel function division and technology, and these contradictions and differences will lead to channel conflicts if handled improperly. MCDONALD'S ELECTRONIC PROCUREMENT SYSTEM

In June 2000, McDonald 's and kohlberg kravis Roberts (accel - KKR) formed a partnership, established the eMac Digital, during a aims to accelerate the development of the global Internet related business in the new company. The reason for this is to focus on opportunities for enterprises, improve efficiency, maximize cost savings, and create new markets and distribution channels. Initially, eMac Digital during the creation, development and investment in new support platform, help McDonald's reduce transaction costs, more effective communication within the company, and use the eMac Digital technology to improve the quality of the operation, during which made use of the advantages of McDonald's. EMac Digital builds an electronic procurement platform for McDonald's and its suppliers to help manage information, transactions, sales, orders and other functions. The electronic procurement system allows McDonald's to buy all of the restaurants they need to run restaurants worldwide, and communicate their needs through the Internet to suppliers. Their electronic procurement system helps cut Labour costs by 85 per cent, while electronic auctions cut supply prices by up to 15 per cent. Advantage 1, through the unified procurement platform, enterprises can come into contact with more qualified suppliers, with the ideal price for purchasing to the raw material; 2. For suppliers, it expands the scope and number of transactions with customers and promotes its competitiveness in a broader market. Both sell and buy. 3. Significantly reduce the purchasing cost according to the American national association of purchasing management, the use of electronic procurement can save a lot cost, adopts the traditional way of each generated an order need the average cost of $150, the use of electronic procurement can reduce to $30. 4. Effectively improve the efficiency of purchasing electronic procurement has long and hard before information collection, information authentication, business negotiation, fund settlement and the working process greatly simplified, procurement staff in a very short period of time can be more widely than before, more comprehensive, more accurate purchase data. 5. Optimize electronic procurement of strengthening of procurement management, optimization of enterprise purchasing management has the vital significance. First, facilitate centralized management of procurement operations. Second, improve the level of enterprise inventory management. Electronic procurement can gradually make the transition from high inventory production to low inventory production, and the transition of micro-inventory production until zero inventory production is realized. 6. Ensure the quality of purchasing electronic procurement buyers can choose suppliers in large range, as far as possible to find the ideal partner quality and price. Through electronic procurement, manufacturers as long as login directly to the component manufacturer's site, select the desired parts varieties, strong again again or any other way to pay a certain amount of the right circumstances, often home confirmed, you can arrange supplier for manufacturers. 7. Increased the transparency of the transactions in traditional procurement activities, insufficient transparency taste for purchasing information affected, some trading is by human reason "black-box operation", not only causes loss to the enterprise, also make the mistake. Electronic procurement has played an important role in improving the transparency of transactions and reducing “black box “operations. First, electronic procurement can improve the transparency of suppliers. Second, improve the transparency of purchasing goods third, improve the transparency of purchase price. Disadvantages 1. Sensitive or private information stolen or leaked risk. 2. Electronic procurement is lacking in emotion because interpersonal communication is replaced by machine trade. 2. Suppliers most early the resistance of the electronic procurement model has a built-in barriers, namely suppliers, participate in and/or transaction costs (2% of the value of the average order), usually continue to accept they already have the order of the contract. These costs, plus added complexity and cost, are adapted to the proprietary e-procurement data formats that they purchase customers to implement. As a result, for many suppliers, electronic procurement means to pay a "tax" of diminishing or increase the cost of doing business, and these costs may force them at a higher price to be passed on to consumers. Today's more advanced e-procurement model has eliminated the cost of suppliers, recognizing that removing barriers from suppliers is a key success factor for the return on e-procurement investment.

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