Network Design in Supply Chain

18. 12. 2011 Fusun Ulengin manufacturer OR DISTRIBUTOR STORAGE WITH CUSTOMER pickup truck 18. 12. 2011 Fusun Ulengin MANUFACTURER OR DISTRIBUTOR STORAGE WITH CUSTOMER PICKUP ? broth is stored at the electrical electrical distributor or manufacturer ? arranges ar shipped to designated pickup points where customers come and pick up their lay 18. 12. 2011 Fusun Ulengin MANUFACTURER OR DISTRIBUTOR STORAGE WITH CUSTOMER PICKUP ? Cost factors ? Inventory is low, accrual at the manufacturer or distributor ? Transportation is lowest when using package carrier due to hookup at pickup locations Facility and discourse facility be are high if pick-up location does not exist already. Handling embodys at pickup locations are high. ? Information ashes More elaborative and sophisticated, extra scheme at the pickup locations. ? Service factors ? Response condemnations comparable to voice communication with package carriers ? guest bring forth worse since customer has to pickup the breaker point himself. On the other hand, since customer do not need to watch at home for deli genuinely and customer send away pay property at the pickup location instead of paying online in advance, close to customers may like pickup option better. Time to market is standardized to other options with manufacturer storage ? Order visibility is very important. Customers should be informed when their orders arrive. ? Returns are easier to handle at pickup location. Returns can 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 sop up ordered online or by phone. Mixed order emplacement options. Most traditional option. 8. 12. 2011 Fusun Ulengin RETAIL STORAGE WITH CUSTOMER PICKUPS ? Cost Factors ? Inventory bells are higher than other options as the inventories are disaggregated and held locally ? Transportation be are reduce than other solutions. Inexpensive modes can be used to replenish inventories at retail outlets. ? Facility costs are high. Many local facilities. ? Information system Minimal if at that place is no online ordering option. For online option more complex information system especially for order visibility. ? Service Factors Response times are very good. Same day pickup for most products. ? production phase 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 diffusion NETWORK ? involve of E-Business on Customer Service ? Response time For product that can be downloaded very fast.For physical products takes longer to take an order than regular retail stores. ? Product varie ty easier to offer variety than brick-and-mortar store. (Amazon imagine the retail store with the said(prenominal) variety offered by Amazon) ? Product availability Better information gathering and forecasting. Better mach between add up and demand, improved product availability. ? Customer experience ? ? ? Access 24 minute access. Geographically eliminating the access limits. Customization customization of product and shopping experience. dell, Amazon displays related products) whatchamacallit Making the purchase at where you are.. Increased speed of conducting business. (e. g. Use of preliminary data 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 comminuted to provide. Internet makes this happen. ? Returnability Harder issue compared to traditional stores since items are sent from a commutation location usually. More returns with online purchases. 18. 12. 2011F usun Ulengin E-BUSINESS AND THE DISTRIBUTION NETWORK ? 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. Flexible pricing, promotion and product portfolio ? Airline last-minute low cost seat, Dells ability of dynamic pricing depending on the percentage 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 furnish and demand, geographical aggregation lowers inventories. Ability of postponement also helps reducing inventory costs. ? Facilities and Handling ? ? ? ? little and centralized facilities, fewer intermediaries lower facility cost. E-business can reduce the handling costs in order fulfillment by having the customer do close to part of the process, e. g. checking product availability, ente ring details of the order. Smoothing the rate of order fulfillment, thus 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 theodolite costs. For downloadable products, significantly less transportation cost. ? Information Shared demand information, better coordination and collaboration reduces the overall supply chain costs.The cost of setting up the information system compulsory 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 tour Webvan is a failure ? E-business-Scorecard can be used to help steady down if e- business is appropriate for your business, how it effects your distribution network in costs and customer services. ? All the costs and customer service factors are effrontery a integer score from +2 (very positive) to -2(very negative) 18. 12. 2011 Fusun Ulengin