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Distribution network desing
This document discusses distribution networks and demand forecasting in supply chains. It begins by defining distribution as the steps to move a product from suppliers to customers. It then discusses how distribution network design impacts costs and customer service. The document outlines different types of distribution networks like direct shipping, distributor storage, and retail storage networks. It also discusses factors influencing demand forecasts like past demand, lead times, marketing, and competitors. Finally, it summarizes qualitative and quantitative forecasting techniques as well as collaboration best practices for building forecasts.
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Introduction to the presentation and group members with their contact information.
Overview of distribution networks focusing on design, performance metrics, customer service, and cost impacts.
Discussion on demand forecasting methods, accuracy, factors influencing forecasts, and techniques for effective forecasting.
Acknowledgment and thanks for participation in the presentation.
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Distribution network desing
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- 3. Serial No. Name Roll No.Mail Leader 1. Sohag Hossain 10107478 sohagbbamkt@gmail.com 2. Md. Zulfikar Haider 10087408 zulfikarhdr@gmail.com 3. Md. Ashraful Islam 10047428 ashraful.ru28@yahoo.com 4. Tania khatun 10217438 tania7438@gmail.com 5. Tusar Ahamed 10117468 tusar09bd@gmail.com 6. Md. Delwar hossain 10087488 delwar_ru007@yahoo.com 7. Md. Atikur Rahman 10087498 atik.bbaru@gmail.com 8. Md Abdul Alim 10027508 alim.ru7508@gmail.com 9. Hossen Soharawordi 10097518 sohagmkt18@gmail.com 3 of 33
- 4. 2.Designing Distribution Networks 4.Demand Forecasting ina Supply Chain 4 of 33
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- 6. Distribution :the steps taken to move and store a product from the supplier stage to the customer stage in a supply chain Distribution directly affects cost and the customer experience and therefore drives profitability Choice of distribution network can achieve supply chain objectives from low cost to high responsiveness Examples: Wal-Mart, Dell, Proctor & Gamble, Grainger 6 of 33
- 7. Distribution networkperformance evaluated along two dimensions at the highest level: • Customer needs that are met • Cost of meeting customer needs Distribution network design options must therefore be compared according to their impact on customer service and the cost to provide this level of service 7 of 33
- 8. Elements of customerservice influenced by network structure: Response time Product variety Product availability Customer experience Time to market Order visibility Return ability Supply chain costs affected by network structure: Inventories Transportation Facilities and handling Information 8 of 33
- 9. Response time andNumber of Facilities Number of Facilities Response Time 9 Of 33
- 10. Inventory Costs andNumber of Facilities Inventory Costs Number of facilities 10 of 33
- 11. Transportation Costs andNumber of Facilities Transportation Costs Number of facilities 11 of 33
- 12. Facility Costs andNumber of Facilities Facility Costs Number of facilities 12 of33
- 13. Response Time Variation inLogistics Costs and Response Time with Number of Facilities Number of Facilities Total Logistics Costs 13 of 33
- 14. • Manager maketwo key decisions when designing a distribution network. 1. Will the product be delivered to the customer location or picked up from a preordained site. 2. Will product flow through an intermediary ( or intermediate location) 14 of 33
- 15. Manufacturer Storage withDirect Shipping Manufacturer Storage with Direct Shipping and In-Transit Merge Distributor Storage with Carrier Delivery Distributor Storage with Last Mile Delivery Manufacturer or Distributor Storage with Consumer Pickup Retail Storage with Consumer Pickup 15 of 33
- 16. Manufacturer Storage with DirectShipping Manufacturer Retailer Customers Product Flow Information Flow 16 of 33
- 17. Distributor Storage withCarrier Delivery Factories Customers Product Flow Information Flow Warehouse Storage by Distributor/Retailer 17 of 33
- 18. Manufacturer Storage withDirect Shipping and In-Transit Merge Network Factories Retailer Product Flow Information Flow In-Transit Merge by Carrier Customers 18 of 33
- 19. Distributor Storage withLast Mile Delivery Factories Customers Product Flow Information Flow Distributor/Retailer Warehouse 19 of 33
- 20. Manufacturer or DistributorStorage with Customer Pickup Factories Retailer Pickup Sites Product Flow Information Flow Cross Dock DC Customer Flow Customers 20 of 33
- 21. Retail Storage withcustomer pickup Retailer Consumers RetailerRetailer Distributor Warehouse Manufacturers Distributor Warehouse 21 of 33
- 22. Distribution Networks inPractice 1. The ownership structure of the distribution network can have as big as an impact as the type of distribution network 2. The choice of a distribution network has very long-term consequences 3. Consider whether an exclusive distribution strategy is advantageous 4. Product, price, commoditization, and criticality have an impact on the type of distribution system preferred by customers 22 of 33
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- 24. The basisfor all strategic and planning decisions in a supply chain Used for both push and pull processes Examples: Production: scheduling, inventory, aggregate planning Marketing: sales force allocation, promotions, new production introduction Finance: plant/equipment investment, budgetary planning Personnel: workforce planning, hiring, layoffs All of these decisions are interrelated 24 of 33
- 25. Hypothetical example offorecasting Demand for Mercedes E Class Time Jan Feb Mar Apr May Jun Jul Aug Actual demand (past sales) Predicted demand We try to predict the future by looking back at the past Predicted demand looking back six months 25 of 33
- 26. 1.Forecasts are always wrong. Shouldinclude expected value and measure of error 26 of 33
- 27. 2.Long-term forecasts are lessaccurate than short-term forecasts (forecast horizon is important) 27
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- 29. A company mustbe knowledgeable about numerous factors that are to the demand forecast. These are- Past demand Lead time of product replenishment Planned advertising or marketing effort State of the economy Planned price discounts Action that competitors have taken 29 of 33
- 30. Under stand the object ives of foreca sting Integrate demand planning and forecasti ng Identify major factors that influence the demand forecast Understa nd and identify customer segments Determine the appropriate forecasting technique Establish performance anderror measures for the forecast 30 of 33
- 31. Qualitative: primarilysubjective; rely on judgment and opinion Time Series: use historical demand only Static Adaptive Causal: use the relationship between demand and some other factor to develop forecast Simulation: Imitate consumer choices that give rise to demand Can combine time series and causal methods 31 of 33
- 32. • Collaborate in building forecasts 1 •The value of data depends on where you are in the supply chain 2 • Be sure to distinguish between demand and sales 3 32 of 33
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