11/12/09 Push based supply chain system . Demand forecasting Order Placed to supplier Placed in shelf for customer Goods sold Goods not sold retailer bear the loss PRESNTATION BY:- SUNIL & SHIV SHANKAR
Highly automated system that runs day-to-day operations of a DC
Controls product, picking, packing, and shipping
1:- Transportation management
2:- Order management
3:- Yard management
4:- Labor management
5:- Warehouse optimization
Warehouse Management Systems PRESNTATION BY:- SUNIL & SHIV SHANKAR
PRESNTATION BY:- SUNIL & SHIV SHANKAR 10- Collaborative Logistics and Distribution Outsourcing It create greater economies of Scale. Internet-based exchange of data and Information. Significant decrease in inventory levels and more efficient logistics Companies focus on core competencies PRESNTATION BY:- SUNIL & SHIV SHANKAR
In 1970s, Wal-Mart first used hub-and-spoke system. Under the system, goods were centrally ordered, assembled at a massive warehouse, known as ‘distribution center’ ( hub ), from where they were dispatched to the individual stores ( spoke ). The hub and spoke system enabled Wal-Mart to achieve significant cost advantages by the centralized purchasing of goods in huge quantities & distributing them through its own logistics infrastructure to the retail stores. Hub & Spoke Model PRESNTATION BY:- SUNIL & SHIV SHANKAR
IT & communication systems are used effectively to track sales & merchandise inventories in stores.
When there is large number of stores a good communication system is required.
New technology should be used such as satellite communication system.
By this companies were able to reduce unproductive inventory by allowing stores to manage their own stocks, reducing pack sizes across many product categories, & timely price marking.
Instead of cutting the inventory across the board,made full use of its IT capabilities to make more inventories available in the case of items that customers wanted most , while reducing the overall inventory levels.
PRESNTATION BY:- SUNIL & SHIV SHANKAR
11/12/09 Using EDI for Procurement The computer systems were connected to suppliers. EDI enabled the suppliers to download purchase orders along with store-to-store sales information relating to their products sold. On receiving information about the sales of various products, the suppliers shipped the required goods to Wal-Mart’s distribution centers.