Network Design in Supply Chain

18. 12. 2011 Fusun Ulengin MANUFACTURER OR distributer STORAGE WITH CUSTOMER PICKUP 18. 12. 2011 Fusun Ulengin MANUFACTURER OR DISTRIBUTOR STORAGE WITH CUSTOMER PICKUP ? Inventory is stored at the distributor or manufacturer ? Orders ar shipped to designated pickup arm points where nodes come and pick up their entrap 18. 12. 2011 Fusun Ulengin MANUFACTURER OR DISTRIBUTOR STORAGE WITH CUSTOMER PICKUP ? court factors ? Inventory is low, aggregation at the manufacturer or distributor ? passage is lowest when using packet boat carrier out-of-pocket to aggregation at pickup sides Facility and handling facility cost are noble if pick-up location does not exist already. Handling cost at pickup locations are high. ? learning system More elaborative and sophisticated, extra system at the pickup locations. ? service factors ? Response times comparable to delivery with package carriers ? Customer experience worse since customer has to pickup the item himself. On the new(prenominal ) hand, since customer do not need to wait at home for delivery and customer sight pay cash at the pickup location instead of paying online in advance, slightly customers may deal pickup option better. Time to market is similar to other(a) options with manufacturer storage ? Order visibility is very important. Customers should be cognizant when their poses arrive. ? Returns are easier to handle at pickup location. Returns jackpot be aggregated and shipped back from pickup locations. 18. 12. 2011 Fusun Ulengin RETAIL STORAGE WITH CUSTOMER PICKUPS ? Inventories are stored in retail stores, customers walk into the store to pick the items they want or items they turn over ordered online or by phone. Mixed order placement options. just about traditional option. 8. 12. 2011 Fusun Ulengin RETAIL STORAGE WITH CUSTOMER PICKUPS ? Cost Factors ? Inventory costs are higher than other options as the inventories are disaggregated and held locally ? cargo ships costs are lower than oth er solutions. Inexpensive modes can be used to replenish inventories at retail outlets. ? Facility costs are high. Many local facilities. ? Information system Minimal if there is no online ordering option. For online option more complex information system peculiarly for order visibility. ? Service Factors Response times are very good. corresponding day pickup for most outputs. ? Product variety is lower than other options. ? Product availability is costly to keep high. ? Customer experience depends on if the customer likes to shop or not. ? Time to market is highest. ? Order visibility is important if online ordering is allowed. ? Returns can be handled at the stores easily. 18. 12. 2011 Fusun Ulengin E-BUSINESS AND THE DISTRIBUTION entanglement ? Impact of E-Business on Customer Service ? Response time For product that can be downloaded very fast.For physical products takes longer to fulfill an order than regular retail stores. ? Product variety easier to offer variety than b rick-and-mortar store. (Amazon gauge the retail store with the same variety offered by Amazon) ? Product availability Better information gathering and forecasting. Better mach between supply and demand, meliorate product availability. ? Customer experience ? ? ? Access 24 hour access. geographically eliminating the access limits. Customization customization of product and shopping experience. dingle, Amazon displays related products) Convenience reservation the purchase at where you are.. Increased speed of conducting occupancy. (e. g. Use of previous entropy for address info) ? Time to market Fast. A new product can be made available as soon as a the first unit is ready. Dell exploits this feature. ? Order visibility Critical to provide. cyberspace makes this happen. ? Returnability Harder issue compared to traditional stores since items are sent from a central location usually. More returns with online purchases. 18. 12. 2011Fusun Ulengin E-BUSINESS AND THE DISTRIBUTION NE TWORK ? Impact of E-Business on Customer Service ? Other benefits of e-business ? ? ? 18. 12. 2011 Enhanced revenues for manufacturers by eliminating intermediaries and having direct contact with customer. Dell v. s. HP. compromising pricing, promotion and product portfolio ? Airline last-minute low cost seat, Dells ability of dynamic pricing depending on the component availability and demand. Efficient fund transfers Quicker and cheaper. Fusun Ulengin E-BUSINESS AND THE DISTRIBUTION NETWORK Impact of E-Business on Cost ? Inventory Better mach of supply and demand, geographical aggregation lowers inventories. office of postponement also helps reducing inventory costs. ? Facilities and Handling ? ? ? ? Less and centralize facilities, fewer intermediaries lower facility cost. E-business can reduce the handling costs in order fulfillment by having the customer do some part of the process, e. g. checking product availability, entering details of the order. Smoothing the rate of order fulfillment, and then reducing the resource requirements.Unlike the retail stores orders dont have to be processed as soon as they arrive. On the downside, for some products like groceries, an e-business has to carry out some tasks currently performed by the customers at retail stores. E. g. Picking the items customer wants and carrying home. ? Transportation Usually higher cost due to increased outbound transportation costs. For downloadable products, significantly less transportation cost. ? Information Shared demand information, better coordination and collaboration reduces the overall supply concatenation costs.The cost of setting up the information system required can be significant. 18. 12. 2011 Fusun Ulengin E-BUSINESS AND THE DISTRIBUTION NETWORK ? The value that e-business brings is not the same in every industry. ? Dell a success story while Webvan is a failure ? E-business-Scorecard can be used to help decide if e- business is appropriate for your business, how it effec ts your distribution network in costs and customer services. ? All the costs and customer service factors are given a integer score from +2 (very positive) to -2(very negative) 18. 12. 2011 Fusun Ulengin