Académique Documents
Professionnel Documents
Culture Documents
Outline
The
Role of Distribution in the Supply Chain Factors Influencing Distribution Network Design Design Options for a Distribution Network The Value of Distributors in the Supply Chain Distribution Networks in Practice
4-2
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, 7-Eleven Japan
4-3
Distribution
network design options must therefore be compared according to their impact on customer service and the cost to provide this level of service
4-4
Response Time
2004 Prentice-Hall, Inc. 4-6
Cost
Low
Low
2004 Prentice-Hall, Inc.
Response Time
Hi
4-7
Number of facilities
2004 Prentice-Hall, Inc. 4-8
Number of facilities
2004 Prentice-Hall, Inc. 4-9
Number of facilities
2004 Prentice-Hall, Inc. 4-10
Total Costs
Facilities Inventory
Transportation
Number of Facilities
2004 Prentice-Hall, Inc. 4-11
Storage with Direct Shipping Manufacturer Storage with Direct Shipping and InTransit Merge Distributor Storage with Carrier Delivery Distributor Storage with Last Mile Delivery Manufacturer or Distributor Storage with Consumer Pickup Retail Storage with Consumer Pickup Selecting a Distribution Network Design
2004 Prentice-Hall, Inc. 4-12
Retailer
Customers
Retailer
Customers
Customers
Product Flow Information Flow
2004 Prentice-Hall, Inc. 4-15
Distributor/Retailer Warehouse
Customers
Product Flow Information Flow
2004 Prentice-Hall, Inc. 4-16
Retailer
Cross Dock DC
Pickup Sites
4-17
Response Time Product Variety Product Availability Customer Experience Order Visibility Returnability Inventory Transportation Facility & Handling Information 2004 Prentice-Hall, Inc.
1 4 4 5 1 1
4 1 1 4 5 5
4 1 1 3 4 5
3 2 2 2 3 4
2 3 3 1 2 3
4 1 1
5
6 2
4
1 6 1
1
4 1 4
1
3 2 4
2
2 3 3
3
5 4 2
1
1 5 5
4-18
+2 +1 -1 -2 +1 -1 +2 -1 -2
-2 -1 +1 +2 -1 +2 -2 +2 +1
-1 0 0 +1 -1 +1 -2 0 +2
0 +1 +1 0 +2 +1 -1 +1 +2
+1 0 -1 -2 +1 0 +1 0 +2
-1 0 +1 +1 0 -2 -2 +2 -1
4-19
4-20
ownership structure of the distribution network can have as big as an impact as the type of distribution network The choice of a distribution network has very longterm consequences Consider whether an exclusive distribution strategy is advantageous Product, price, commoditization, and criticality have an impact on the type of distribution system preferred by customers
2004 Prentice-Hall, Inc. 4-21
are the key factors to be considered when designing the distribution network? What are the strengths and weaknesses of various distribution options? What roles do distributors play in the supply chain?
4-22