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Scm(meseor)

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    Scm(meseor) Scm(meseor) Presentation Transcript

    • Distribution Network in a Supply Chain SATHASIVAM. K M.E.(SEOR) 200836315 Anna University    
    • Distribution Network in a Supply Chain  Objectives  The Role of Distribution in the SC  Factors Influencing Distribution Network Design  Design Options for a Distribution Network  The Value of Distribution in the SC  Distribution Networks in Practice  Summary of Learning Objectives    
    • Distribution Network in a Supply Chain  The Role of Distribution in the SC  Distribution – The steps taken to move and store a product from the supplier stage to a customer stage in the SC  Distribution directly affects cost and the customer experience and therefore drives profitability  Low cost to high responsiveness  Example – Wal-Mart, Dell, P&G    
    • Distribution Network in a Supply Chain  Factors Influencing Distribution Network Design  Two Dimensions –  Customer needs that are met  Cost of meeting customer needs    
    • Distribution Network in a Supply Chain  Design Options for a Distribution Network  Mannufacturer storage with direct shipping Manufacturer Retailer Customers Product Flow     Information Flow
    • Distribution Network in a Supply Chain  Design Options for a Distribution Network  Mannufacturer storage with direct shipping (contd...) Cast Factor Performance Inventory Low Costs Transportation Higher Transportation costs Facilities and handing Lower facility costs Service Factor Performance Response time High response time Product variety high level of variety Product availability high level of product availability    
    • Distribution Network in a Supply Chain  Design Options for a Distribution Network  Mannufacturer storage with direct shipping and In- Transit Merge Factories Retailer In-Transit Merge by Carrier Customers     Product Flow
    • Distribution Network in a Supply Chain  Design Options for a Distribution Network  Mannufacturer storage with direct shipping and In-Transit Merge (contd...) Cast Factor Performance Inventory Drop-shipping Transportation lower Transportation costs Facilities and handing Higher facility costs Service Factor Performance Response time High response time Product variety high level of variety Product availability high level of product availability    
    • Distribution Network in a Supply Chain  Design Options for a Distribution Network  Distributor Storage with Carrier Delivery Factories Warehouse Storage by Distributor/Retailer Customers Product Flow     Information Flow
    • Distribution Network in a Supply Chain  Design Options for a Distribution Network  Distributor Storage with Carrier Delivery (contd...) Cast Factor Performance Inventory Higher than Manufacturere storage Transportation Lower than Manufacturere storage Facilities and handing Higher than Manufacturere storage Service Factor Performance Response time Faster than Manufacturere Storage Product variety Lower than Manufacturere storage Product availability high level of product availability    
    • Distribution Network in a Supply Chain  Design Options for a Distribution Network  Distributor Storage with Last Mile Delivery Factories Warehouse Storage by Distributor/Retailer Customers Product Flow     Information Flow
    • Distribution Network in a Supply Chain  Design Options for a Distribution Network  Distributor Storage with Carrier Delivery (contd...) Cast Factor Performance Inventory Higher than Distributor storage with package carrier delivery Transportation very high cost Facilities and handing Higher than Manufacturere storage Service Factor Performance Response time Very Quick Product variety Lower than Manufacturere storage Product availability More expensive to provide availability    
    • Distribution Network in a Supply Chain  Design Options for a Distribution Network  Manufacturer or Distributor Storage with Consumer Pickup Factories Retailer Cross Dock DC Pickup Sites Customers     Customer Flow Product Flow Information Flow
    • Distribution Network in a Supply Chain  Design Options for a Distribution Network  Manufacturer or Distributor Storage with Consumer Pickup (contd...) Cast Factor Performance Inventory Can match any other option depending on the location Transportation Lower than the use of package carriers Facilities and handing Very high if new facilities Service Factor Performance Response time Similar to carrier delivery Product variety Similar to other manufacturer Product availability Similar to other manufacturer    
    • Distribution Network in a Supply Chain  Design Options for a Distribution Network  Retail Storage with Customer Pickup  Inventory is stored locally at retail stores Cast Factor Performance Inventory Higher than all other options Transportation Lower than all other options Facilities and handing Higher than all other options Service Factor Performance Response time Same day pickup possible for items stored locally at pick up site Product variety Lower than all other options Product availability More Expensive to provide than all other options    
    • Distribution Network in a Supply Chain  The Value of Distributors in the SC  Distributing Consumer Goods in India  Small replenishment lot size  Lowering transportation cost  Improving replensihment response time  Distributing MRO Products  Emergency in small quantities    
    • Distribution Network in a Supply Chain  The Value of Distributors in the SC  Distributing Electronic Components  Improvement in SC performance  Reduction in inbound transportation cost  Reduction in inventory costs  Lower cost by planning production more effectively  Inventory closer to the point of sale  One-stop shopping  ergency in small quantities