b2b distribution network (1).ppt

8/10/2019 B2B Distribution Network (1).ppt

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Responsiveness v/s Efficiency

Responsiveness : It includes supply chain ability to do the following

a) Meets short Lead time

b) Respond to wide ranges of quantities demandedc) Handles high uncertainty

d) Meets high service level

Efficiency : It is the cost of making and delivering product to

the customer

Cost

Responsiveness

High Low

Low

High



Drivers of B2B Performance

ResponsivenessEfficiency

Facilities Inventory Transportation Information

B2B Supply Chain Strategy

Structure

•Location

•Capacity

•Warehousing

Methodology

a) Cross Docking

b) Flow through

c) Put away

•Cycle Inventory

•Safety Inventory

•Seasonal Inventory

•Sourcing

•Mode of Transport

•Route and Network

•In house or Outsource

•Pull versus Push

•Information Sharing

•Technologies to be used

•Forecasting and Planning

•Pricing and Revenue Mgt.



• Increasing variety of Products

• Decrease in Product Lifecycles

• Increasing Demanding Customers

• Fragmentation of Supply Chain ownership

• Globalization , Global Sourcing

Obstacles of Performance



DesigningA B2B

Distribution Network



Factors influencing Distribution Network Design

Two Dimensions of performance is based on

1. Customer needs that are met

2. Cost of meeting customer needs

Customer Service (main components)

1. Response Time

2. Product variety

3. Product availability

4. Customer experience5. Order visibility

6. Returnability



Manufacturer

Retailer

Customer

Product Flow

Information Flow

Manufacturer Storage with Direct Shipping

(Drop Shipping)



Manufacturer

Retailer

Customer

Manufacturer Storage with Direct Shipping

(Drop Shipping)

Inventory 1

Transportation 4

Facilities & Handling 1

Information 4

Response Time 4

Product variety 1

Product availability 1

Customer experience 4

Order visibility 5

Returnability 5



Factory

Retailer

Customer

In Transit Merge by Carrier

In Transit Merge Network

Product Flow

Information Flow



Factory

Retailer

Customer

In Transit Merge

by Carrier

In Transit Merge Network

Inventory 1

Transportation 3


Information 4

Response Time 4

Product variety 1



Order visibility 4

Returnability 5



Factories

Retailer

Customer

Cross Dock DC

Pick up Sites

Customer Flow

Manufacturer Warehouse Storage with

Customer pickup

Product Flow

Information Flow



Manufacturer Warehouse Storage with

Customer pickup

Inventory 1

Transportation 1


Information 5

Response Time 4

Product variety 1



Order visibility 5

Returnability 2

Factories

Retailer

Customer

Cross Dock DC

Pick up Sites



Vendors

Customer

Retailer’s DC

Retail Stores

Retail Storage with Customer’s pickup

Customer Flow

Product Flow

Information Flow



Vendors

Customer

Retailer’s DC

Retail Stores

Retail Storage with Customer’s pickup

Inventory 4

Transportation 1


Information 1

Response Time 1

Product variety 4



Order visibility 1

Returnability 1

b2b distribution network (1).ppt

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