Case study

1
Case study Apple Computer

• 19961997
• Lost nearly 1.9 billion
• 1998
• made 309 million
• The reasons of Apples success
• The return of confounder Steve Jobs
• The introduction of new products (iMac)
• Remaking the companys inefficient supply chain
• Outsourcing most manufacturing and assembly work
  to contract manufacturers

2
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• ????SMART??

3
Supply chain management
The complete sequence of activates that move
goods from the source of raw materials to
ultimate consumers

• Supply chain
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

4
Competitive advantage of supply chain management

• Improve the quality of products
• Improve the speed at which they get to market
• Improve the ability to provide good customer
  service
• Improve the delivery schedules

• Supply chain
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

5
The focuses of supply chain management

• Suppliers
• Production operations
• Distributors
• Purchasers
• Information system

• Supply chain
• Outsourcing
• Global sourcing
• Channels of distribution
• Wholesalers
• Retail distribution
• Transportation modes

6
Case study Wal-Mart

• Building a hub-and-spoke network of distribution
  centers surrounded by stores not more than a
  days truck drive away, and has created a
  state-of-the art information system that links
  its stores and suppliers.
• Faster deliveries
• Fresher merchandise
• Fewer markdowns
• Lower labor costs

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Suppliers are necessary evils or partners ?
????(??????) or ?????
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Purchasing and supplier relations

• Supply chain
• Purchasing and supplier relations
• Outsourcing
• Global sourcing
• Channels of distribution
• Wholesalers
• Retail distribution
• Transportation modes

• Past
• Adversarial relationship
• Today
• partners

9
Adversarial relationship

• Supply chain
• Purchasing and supplier relations
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

• Business withhold information from their
  suppliers
• Set suppliers against each other in aggressive
  bidding struggles
• Not to build long-term commitments with each other

10
Results of adversarial relationship

• Supply chain
• Purchasing and supplier relations
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

• Large supplier bases
• Short-term contracts

11
Advantage of adversarial relationship

• Supply chain
• Purchasing and supplier relations
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

• Ensured adequate supplies
• Allowed firms to pressure vendors for price
  concessions

12
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• ?????????,?????????,??????????????????

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Partnering relationship

• Supply chain
• Purchasing and supplier relations
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

• Cooperate with each other
• Share information
• Help each other succeed

14
Advantage of Partnering relationship

• Supply chain
• Purchasing and supplier relations
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

• Long-term cost savings
• Higher quality products

15
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• ?????????
• DaimlerChrysler Presourcing(??????)

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Qualification criteria and evaluation programs
for supplier (Campbell Soup)

• Supply chain
• Purchasing and supplier relations
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

• Technical capabilities
• Financial health
• Cost-effectiveness
• High quality standards
• innovativeness

17
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• ???????????????????????

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Why firms are outsourcing
Of the 100 largest U.S. Corporations 77
contract with outside firms to provide resources
Why?

• Supply chain
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

Allows the firm to concentrate on its core
competencies
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Why firms are outsourcing
Of the 100 largest U.S. Corporations 77
contract with outside firms to provide resources
Why?

• Supply chain
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

• Many of the firms functions can be done better
  and cheaper by those who specialize in that
  function

20
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• ????????
• ?????????

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Advantages to global outsourcing

• Global outsourcing allows firms to take
  advantage of changes in economies that can create
  cost savings

• Supply chain
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

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Case study Canon

• Internal components is produced in Taiwan
• Casings made in South Korea
• Assembly done in the Philippines
• Finished copiers warehoused in Los Angeles,
  London Melbourne, and Tokyo

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Channels of Distribution

• Direct distribution channel
• The path in which products move from a producer
  to the ultimate user without an intermediary.
• Example Dell computer
• Marketing intermediaries
• Individuals or organizations that help move goods
  and services between a producer and user.

• Supply chain
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

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Type of marketing intermediaries

• Wholesalers (???)
• Agents (???)
• Retail stores (???)
• Vending machines (?????)

• Supply chain
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

25
Contrast direct distribution with intermediaries

• Supply chain
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

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Why firms use intermediaries

• They can reach users that a firm might not
  otherwise be able to access (??,????)
• They create utility (?????)
• Providing services (??,???????????????????)
• Potentially lower cost (???? vs. ????????)

• Supply chain
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

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Wholesalers

• Marketing intermediaries who sell to other
  businesses for re-sale to ultimate consumers.
• Types of wholesaler
• Merchant wholesalers (?????)
• An independently owned firm that takes legal
  possession of goods produced by a variety of
  manufacturers and then resells those goods to
  other businesses.
• Agents (???)
• They dont take ownership of the products they
  sell.

• Supply chain
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

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Classification of merchant wholesalers1

• Full-function (warehousing. Delivery, financing)
• Rack jobbers (?????)
• Full-function merchant wholesalers who stock,
  display, and service particular products in
  retail stores, paying the retailer a commission
  based on sales.

• Supply chain
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

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Classification of merchant wholesalers2

• Limited-function (specialized set of services)
• Drop shippers (?????)
• After receiving an order from a customer, drop
  shippers have the merchandise shipped directly
  from the producer to the customer.
• They provide no inventories, warehousing, or
  delivery
• They provide their knowledge and relationships
  with producers, and his skills at negotiation the
  best possible price.
• Example lumber industry

• Supply chain
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

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Agents

• They act as the sales arm of manufacturers who
  dont have their own sales force.
• Independent agents add value to the distribution
  channel through their product expertise and the
  relationships they build with customers.

• Supply chain
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

31
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• ????????Moser, Meissen, SOHER

32
Retail distribution

• Retailer
• An intermediary who sells goods and services
  directly to the ultimate consumer
• Classification of retailers
• Store
• Nonstore
• Telemarketing (????)
• Infomercials (????)
• Multilevel marketing (?????)
• Automatic vending machines (?????)
• Internet sales (????)

• Supply chain
• Outsourcing
• Global sourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

33
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• ????,??(telemarketing)
• ????(infomercials)
• ??(multilevel marketing)
• ????(internet sales)
• Dell Computer (internet sales)

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Three types of retail distribution strategies1

• Intensive distribution(????)
• Product in as many retail outlets as possible.
• This strategy works well with low-priced
  convenience goods.
• Selective distribution(?????)
• Product to a limited group of retailers.
• This strategy is frequently chosen by
  manufacturers of luxury or expensive products.
• Customers of these products tends to require more
  time and product information ?Closer
  relationships with retailers

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

35
Three types of retail distribution strategies2

• Exclusive distribution(????)
• Products in one retail outlet in geographical
  area.
• For products that are expensive and for which the
  manufacturer wants to maintain control of the
  brand image.

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

36
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• ???(?????????????)
• LV,PRADA(???????????)
• MINI(??),SMART(????)

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Differentiation of retailers

• Price
• Service
• Location
• Selection
• Customer experience

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

38
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• Southwest Air,???(price)
• Netgrocer.com,?????,?????,???(service)
• 7-11(7?????11??)(location)
• ????,????,??? (selection)
• McDonalds kids playlands,REI (customer
  experience)

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Factors affecting channel selection1

• Market segment
• Small number of target buyers, concentrated in
  close proximity to each other, who make frequent
  purchases ? A direct channel
• Product characteristics
• The higher a products price, the more perishable
  product, the more that product is customized ?
  the shorter the distribution channel

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

40
Factors affecting channel selection2

• Producer resources
• Firms that are large and financially strong ? A
  direct channel or at least keep the distribution
  channel short
• Complexity of the producers product line
• Firms that produce an extensive product line ? A
  direct channel

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

41
Factors affecting channel selection3

• Degree of control sought
• The more intermediaries that a firm uses, the
  more control it loses.

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

42
Managing channel relations

• Providing support to intermediaries
• Training
• Information
• Rewards
• Minimizing channel conflicts
• Disagreements among members in their distribution
  channel
• Power differences in the distribution channel
• Major brands are adding direct sales to their
  distribution channels

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Transportation modes

43
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• Waterman ????
• ??Dell Computer??????
• MONT BLANC?????

44
Physical distribution

• The activities required to move a product
  efficiently from the end of the production line
  to the end user.
• Primary decisions of physical distribution
• Where the product will be stored
• How it will be transported
• Inventory control
• Materials handling

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

45
Warehousing

• The storing of products as they move through the
  distribution channel.
• Types of warehouses
• Storage warehouses
• Storage facilities that store products for
  extended periods of time.
• Distribution centers (DC)

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

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Changing role of warehousing

• Past
• Owned and operated by the manufacturers
  themselves
• Basic purpose was to provide storage for finished
  goods
• Today
• Fewer and larger warehouses
• Outsourcing control to warehousing specialists
• Implementing sophisticated warehouse management
  systems to improve efficiency
• Turning storage warehouses into distribution
  centers

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

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Modes of Transportation

• Truck(??)
• Rail(??)
• Water(??)
• Pipeline(??)
• Air(??)

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

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Truck1

• ??
• ????
• ?????
• ??????(door to door service)
• ????

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

49
Truck2

• ??
• ????
• ????
• ????????????
• ??????????????
• ????
• ????
• ????
• ??
• ????
• ?????

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

50
??????????

• ??
• ??????
• ??????
• ????????
• ???????
• ?????????????(??????)
• ??
• ???????????

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

51
Rail1

• ??
• ????????,??,??,????,??
• ?????
• ????????
• ????
• ?????????

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

52
Rail2

• ??
• ?????
• ????
• ????
• ??????

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

53
Rail3

• ??
• ????
• ????
• ?????????
• ??
• ????????
• ????

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

54
Water1

• ??
• ????
• ?????
• ??????
• ???

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

55
Water2

• ??
• ????
• ????
• ????
• ???????,??????????
• ????
• ??
• ??????
• ?????
• ???
• ???????????

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

56
Pipeline1

• ??
• ????????
• ????
• ?????
• ?????
• ????

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

57
Pipeline2

• ??
• ????
• ??????
• ???
• ??
• ????
• ???,????
• ????
• ???

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

58
Air1

• ??
• ???????
• ????
• ????
• ????????

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

59
Air2

• ??
• ???
• ??????
• ??????
• ??
• ???
• ????
• ?????
• ?????

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

60
Comparing transportation modes

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

61
????(Intermodal Transportation)

• ??
• ????????????????,???????????,??????????????,??????
  ??????????
• ??
• ???????????,?????????????????

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

62
???????

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

63
?????????

• ??????
• ???????
• ???????????
• ????
• ?????
• ??????
• ????
• ???????,??????????
• ???????????
• ??????

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

64
?????????1

• ??????????
• ??????
• ??????
• ????????,???????
• ??????
• ??????

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

65
?????????2

• ??????????
• ????????
• ??????
• ????,???????
• ??????
• ??????

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

66
Managing relations with physical distributors

• Information technology
• Networked computers
• Satellite technology
• Example
• FedEX ? mobile computerized tracking system

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution

67
Responsibilities to suppliers and distributors

• To build and maintain a long-term, partnering
  relationship with people and organizations along
  the supply chain, business will need to share all
  information that can help them do their job
  effectively.

• Supply chain
• Outsourcing
• Channels of Distribution
• Wholesalers
• Retail distribution
• Physical distribution
• Responsibilities to suppliers and distributors