DESIGNING THE DISTRIBUTION NETWORK IN THE SUPPLY CHAIN

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DESIGNING THE DISTRIBUTION NETWORK IN THE SUPPLY
CHAIN

• Delivering to the Customer

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AGENDA

• INTRODUCTION
• ROLE OF DISTRIBUTION (4.1)
• Including
• Some Numbers
• Objectives

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AGENDA

• FACTORS INFLUENCING (4.2)
• Service Factors
• Cost Factors

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AGENDA

• DESIGN OPTIONS (4.3)
• Drop-Ship
• Drop-Ship, In-transit Merge
• Distributor Store, Carrier Delivery
• Distributor Store, Last Mile
• Consumer Pickup
• Retail Store

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AGENDA

• IN PRACTICE (4.5)
• Ownership
• Consequences
• Strategies
• Consistent

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INTRODUCTION

• Balancing
• Cost
• Service
• Profits

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INTRODUCTION

• Considering
• Customers
• Competitors
• Suppliers

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AGENDA

• ROLE OF DISTRIBUTION (4.1)
• Including
• Some Numbers
• Objectives

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ROLE OF DISTRIBUTION

• Includes
• Move and store
• Supplier Stage
• Customer Stage

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ROLE OF DISTRIBUTION

• Some Numbers
• 10.5 percent of GDP
• 20 percent of manufacturing costs
• Higher for lower value products

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ROLE OF DISTRIBUTION

• Objectives
• Efficiency
• Responsiveness

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AGENDA

• FACTORS INFLUENCING (4.2)
• Service Factors
• Cost Factors

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FACTORS INFLUENCING

• Service
• Response Time

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FACTORS INFLUENCING

• Service
• Product Variety
• Product Availability
• Order Visibility
• Returnability

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FACTORS INFLUENCING

• Cost
• Inventories

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FACTORS INFLUENCING

• Cost
• Transportation

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FACTORS INFLUENCING

• Cost
• Facilities and Handling

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AGENDA

• DESIGN OPTIONS (4.3)
• Drop-Ship
• Drop-Ship, In-transit Merge
• Distributor Store, Carrier Delivery
• Distributor Store, Last Mile
• Consumer Pickup
• Retail Store

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DESIGN OPTIONS

• Drop-Ship

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DESIGN OPTIONS

• Drop-Ship

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DESIGN OPTIONS

• Drop-Ship, In-transit Merge

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DESIGN OPTIONS

• Drop-Ship, In-transit Merge

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DESIGN OPTIONS

• Distributor Store, Carrier Delivery

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DESIGN OPTIONS

• Distributor Store, Carrier Delivery

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DESIGN OPTIONS

• Distributor Store, Last Mile

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DESIGN OPTIONS

• Distributor Store, Last Mile

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DESIGN OPTIONS

• Mfr. or Dist. Store, Customer Pickup

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DESIGN OPTIONS

• Mfr. or Dist. Store, Customer Pickup

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DESIGN OPTIONS

• Retail Store, Customer Pickup

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DESIGN OPTIONS

• Retail Store, Customer Pickup

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AGENDA

• IN PRACTICE (4.5)
• Ownership
• Consequences
• Strategies
• Consistent

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IN PRACTICE

• Ownership
• Long-term
• Strategies
• Intensive
• Selective
• Exclusive
• Internally Consistent

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SUMMARY AND CONCLUSIONS