Marketing: supply management assignment

When supply chains are in disagreement about their goals, roles, or rewards, vertical channel conflict or vertical supply chain conflict or discord results. Horizontal channel conflict or horizontal supply chain conflict can also occur when there is disagreement or discord. In independent or conventional supply chain, the several independent members a manufacturer, a wholesaler, and a retailer each attempt to satisfy their own objectives and maximize their own profits. None of the participants has any control of the others.

Vertical marketing system, which is a marketing channel in which the members act as a unified system. In an administered vertical marketing system there is no common ownership and no contractual relationships, but the dominant channel member controls or holds the balance of power in the channel relationship. Open, honest communication is key to supply chain relationship. Buyers, vendors such as retailers and manufacturers must understand each other’s business, their roles, in the relationship, each firm’s strategies and any problems that may arise over the course of the relationship.