Chapter 10Material & Information Flow Management in Channel

Material Flow & Logistics System

Thinking 2: content of logistics systemThinking 1: PD or LogisticsThinking 3: task and goal of logisticsThinking 4:programming and management of logistics

Acording to functionAcording to activity processAcording to spacial scopeAcording to nature & categorySupply Logistics Manufacture Logistics Sale Logistics Returned LogisticsWaste Material Logistics Transportation Subsystem Storage SubsystemLoading & Unloading Subsystem Packaging SubsystemDstribution Subsystem Circulation &Processing Subsystem Regional Logistics Domestic Logistics International LogisticsSocial Logistics Industrial Logistics Enterprise Logistics Thinking 2: content of logistics system

Logistics contents

Thinking 3: task and goal of logisticsQuick Response

Maximum Transportation Amount

Consolidation

Minimum Inventory

Relatively Balanced Minimum Change

Total Quality Control

Life Cycle Support

Domestic 3PL Enterprise Category

Thinking 4:programming and management of logistics

D=T+FW+VW+SD: total cost of logistics system

T: transportation cost of this system

FW: fixed inventory cost of this system

VW: total variable inventory cost of this system S: total opportunity cost of loss on sale caused by delayed distribution

Factors & Assessment of Customer Service in Channel Logistics Before-trade FactorCustomer service regulation

Organization structure

System flexibility

Management serviceDuring-trade FactorOrdering informationOrdering convenienceOrdering cycleSpecial freightStock out levelsurrogate productsFixing/Warranty/Change/Providing/Spare & accessory partsProducts track Customers resentment for refundTemporary borrowing After-trade Factor

Customer Service Factors Assessment

Transportation Management

Optimization of Transportation Line

Inventory Management

Method to Identify the Optimal Ordering Amount1)EOQ

2) ABC Classification Method

3) Material Requirements Planning MRP II (Manufacturing Resource)4)JIT5)Enterprise Requirements Planning6)QR7)ECR

EOQA

Explaination for the EOQ Model Point A stands for economic ordering lot size, or economic ordering amount.Ordering cost and inventory cost changing with amount of ordering lot size respectivrly.Ordering cost decreasing with increasing of ordering lot size; inventory cost increasing with increasing of ordering lot size.

Channel Information System

Channel Information System Defined An integrated man-machine system, aiming at improving effect and efficiency of enterprise strategy .It is human-oriented and manage information by computer.

Channel information system Nature A management system & A social system

Structure of MIS

Structure of MIS

Structure of MIS

Headquarters/Franchisers/Stores ManagementSystemInformation ManagementTechnology AmongChannel Members

Analysis of Channel Information ProcessDelivery Management

Customer Management

Accounts Receivable/payable

After-sale service

Sale Management Promotion Management

Inventory Management

Purchasing Management

Function of Channel Information SystemSupporting distribution rear services stronglyAssessing adjust channel membersFacilitating and improving rear services data exchangeUsed in non-channel management

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