• the impacts of climate change,water scarcity and availability of raw materials and oil is affecting the production and affordability of food 
• ways of marketing channels add value 
• reduce number of transactions 
• increase value for consumers 
• more efficient and effective operations 
• without marketing channel, consumers would be forced to 
• find raw materials,
• manufacture products
• direct vs indirect strategies 
• direct marketing channel - no intermedierise i,e, GAP 
• inderect channel - has intermediariees 
• one intermediaries - car dealerships 
• two intermediaries - beer companies wholesale, retail, consumer 
• design marketing channels : retailers, role of distrubution centers versus direct store delivery 
• benefits of distrubution centers 
• store merchandise until the next link in the chain is ready for it 
• prepare floor-ready merchandise 
• adds to overall efficiency - distribution centers use sophisticated routing and scheduling systems 
• logistics: movement of products through channels 
• concerns for: timeliness, consistency, quality, efficiency, sustainability 
• vendor-managed inventory: transaction data sent directly to manufacturer: order for new merchandise; vendor- managed negotiation 
• just in time inventory systems: coordinate deliveries between distrubution center: corporate-managed negotiations 
• inventory managment strategies: pull vs push marketing 
• push: producer centric
• maxamize production ( high inventory) 
• products with stable demand 
• pull 
• customer centric 
• resellers order from manufacturer based on consumer demand 
• products with uncertain demand 
• manufacturer focus: influence consumer demand 
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