Marketing Channels 8th Edition by Bert Rosenbloom

Exercise 2

Timberland Company is one of the world's bestknown manufacturers of casual shoes and sports boots. For many years the company's logistical system was geared to large orders. Hence priority was given to major department stores and retail chains that purchased in large quantities. But market reports were indicating that consumers were shopping in increasing numbers at small independent retailers and boutiques for the kinds of shoes and boots sold by Timberland. So, the problem facing Timberland was how to service the large numbers of small retailers with their tiny orders while still maintaining high levels of efficiency and low order processing costs. To meet this challenge, Timberland reengineered its logistical system by using modern scanning equipment to control inventory, track merchandise and handle all paperwork automatically.
Does this situation represent an interface between channel management and logistics management? Explain.