Lecturer: Max Galarza
Students:
Sergio Rosero
Gabriela Rosero
Jocelyne Barrera
Kelly Zambrano
Javier Mackliff
Course: 6th ...
• The path through which goods and
services travel from the vendor to the
consumer or payments for those products
travel f...
• Channels are broken into direct and
indirect forms.
• It is necessary to determine correctly the
channel you are going t...
Direct and Indirect channels
• "direct" channel allowing the consumer to buy the good
from the manufacturer
• "indirect" c...
Rol of intermediaries
• Own the product at the time and facilitating the
transfer of ownership of the product
• Consumer s...
Brokers commitments with
producers
• Determination of prices
• General conditions of sale
• Definition of the geographic a...
Design of distribution channels
It requires a well-organized method for designing
channels that satisfy customers and over...
LOGISTICS NETWORK
CONFIGURATION
The Logistics Network
The Logistics Network consists of:
• Facilities:
Vendors, Manufacturing Centers, Warehouse/
Distribu...
Network Design: Key Issues
• Pick the optimal number, location, and size of
warehouses and/or plants.
• Determine optimal ...
OBJECTIVE OF LOGISTICS
MANAGEMENT
Design or configure the logistics
network so as to minimize annual
system-wide cost subj...
Network Design: Key Issues
The objective is to balance service
level against
• Production/ purchasing costs
• Inventory ca...
Network Design Tools:
Major Components
• Mapping
• Mapping allows you to visualize your supply chain and solutions
• Mappi...
Mapping Allows You to Visualize Your
Supply Chain
Data for Network Design
1. A listing of all products
2. Location of customers, stocking points and sources
3. Demand for e...
Customers and Geocoding
• Sales data is typically collected on a by-customer basis
• Network planning is facilitated if sa...
Aggregating Customers
• All customers within a single cell or a single
cluster are replaced by a single customer
located a...
Impact of Aggregating Customers
• The customer zone balances
1. Loss of accuracy due to over aggregation
2. Needless compl...
Displaying the Solutions Allows you
To Compare Scenarios
Is not the same to have a massive production and send it to all t...
Netgraphy
• http://es.slideshare.net/laubalez/logistics-distribution-channel
• http://info.cba.ksu.edu/ehie/Faculty Site T...
distribution channels & networking 10
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distribution channels & networking 10

  1. 1. Lecturer: Max Galarza Students: Sergio Rosero Gabriela Rosero Jocelyne Barrera Kelly Zambrano Javier Mackliff Course: 6th A Grade: 10 Date: August 26, 2015 LOGISTICS II
  2. 2. • The path through which goods and services travel from the vendor to the consumer or payments for those products travel from the consumer to the vendor. • Can be as short as a direct transaction from the vendor to the consumer, or may include several interconnected intermediaries along the way such as wholesalers, distributers, agents and retailers.
  3. 3. • Channels are broken into direct and indirect forms. • It is necessary to determine correctly the channel you are going to use, so the company can supply the customer needs.
  4. 4. Direct and Indirect channels • "direct" channel allowing the consumer to buy the good from the manufacturer • "indirect" channel allowing the consumer to buy the good from a wholesaler. • Direct channels are considered "shorter" than "indirect" ones.
  5. 5. Rol of intermediaries • Own the product at the time and facilitating the transfer of ownership of the product • Consumer search • Provider search • Storage • Price equilibrium • Financing • Services • Packaging of • Product approach • Promotion
  6. 6. Brokers commitments with producers • Determination of prices • General conditions of sale • Definition of the geographic area • Specification of all the details • So on brokers can determine the risk of the transportation of the goods.
  7. 7. Design of distribution channels It requires a well-organized method for designing channels that satisfy customers and overcome competition. There are 4 choices: 1. Specify the distribution function 2. Select the type of channel 3. To determine the intensity distribution 4. Select specific members of the channel
  8. 8. LOGISTICS NETWORK CONFIGURATION
  9. 9. The Logistics Network The Logistics Network consists of: • Facilities: Vendors, Manufacturing Centers, Warehouse/ Distribution Centers, and Customers • Raw materials and finished products that flow between the facilities.
  10. 10. Network Design: Key Issues • Pick the optimal number, location, and size of warehouses and/or plants. • Determine optimal sourcing strategy • Which plant/vendor should produce which product • Determine best distribution channels • Which warehouses should service which customers
  11. 11. OBJECTIVE OF LOGISTICS MANAGEMENT Design or configure the logistics network so as to minimize annual system-wide cost subject to a variety of service level requirements
  12. 12. Network Design: Key Issues The objective is to balance service level against • Production/ purchasing costs • Inventory carrying costs • Facility costs (handling and fixed costs) • Transportation costs That is, we would like to find a minimal-annual-cost configuration of the distribution network that satisfies product demands at specified customer service levels.
  13. 13. Network Design Tools: Major Components • Mapping • Mapping allows you to visualize your supply chain and solutions • Mapping the solutions allows you to better understand different scenarios • Color coding, sizing, and utilization indicators allow for further analysis • Data • Data specifies the costs of your supply chain • The baseline cost data should match your accounting data • The output data allows you to quantify changes to the supply chain • Engine • Optimization Techniques
  14. 14. Mapping Allows You to Visualize Your Supply Chain
  15. 15. Data for Network Design 1. A listing of all products 2. Location of customers, stocking points and sources 3. Demand for each product by customer location 4. Transportation rates 5. Warehousing costs 6. Shipment sizes by product 7. Order patterns by frequency, size, season, content 8. Order processing costs 9. Customer service goals
  16. 16. Customers and Geocoding • Sales data is typically collected on a by-customer basis • Network planning is facilitated if sales data is in a geographic database rather than accounting database 1. Distances 2. Transportation costs • New technology exists for Geocoding the data based on Geographic Information System (GIS)
  17. 17. Aggregating Customers • All customers within a single cell or a single cluster are replaced by a single customer located at the center of the cell or cluster. We refer to a cell or a cluster as a customer zone.
  18. 18. Impact of Aggregating Customers • The customer zone balances 1. Loss of accuracy due to over aggregation 2. Needless complexity • What affects the efficiency of the aggregation? 1. The number of aggregated points, that is the number of different zones 2. The distribution of customers in each zone. 3. Reduction of transportation costs
  19. 19. Displaying the Solutions Allows you To Compare Scenarios Is not the same to have a massive production and send it to all the country, than Having a low production and assume the costs of sending to everywhere.
  20. 20. Netgraphy • http://es.slideshare.net/laubalez/logistics-distribution-channel • http://info.cba.ksu.edu/ehie/Faculty Site Templates/MANGT 662/Logistics Network Lecture.ppt • http://www.inboundlogistics.com/cms/article/using-social-networking- for-logistics/

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