Vertical Marketing System

#shorts Vertical Marketing System is a structure of distribution where channel members have systematic cooperation to ensure efficient flow of products from manufacture to consumer or user.

For example.

A supermarket company has merchanding department located in the head office of their company.

Its responsibility is to coordinate with suppliers the items needed by the store.

It includes the creation of purchase order and managing the delivery schedule.

Then the supplier will go to the store to deliver the items with the document called sales invoice.

The receiving personnel then will count and check if the items in the purchasing order are same from sales invoice.

If there are no discrepancies, documents will be submitted to the payables department for the processing of payment of the supplier.

Received stocks will be placed first in the warehouse, and will be displayed in the selling area of the supermarket for the customer to purchase.