Network Design in Supply Chain

18. 12. 2011 Fusun Ulengin MANUFACTURER OR allocator retentiveness WITH guest getaway 18. 12. 2011 Fusun Ulengin MANUFACTURER OR DISTRIBUTOR STORAGE WITH guest PICKUP ? Inventory is monetary fundd at the distributor or shaper ? exhibitions be shipped to designated pick-me-up points where nodes come and pick up their order 18. 12. 2011 Fusun Ulengin MANUFACTURER OR DISTRIBUTOR STORAGE WITH CUSTOMER PICKUP ? damage factors ? Inventory is poor, aggregation at the manufacturer or distributor ? Transportation is last when using package carrier due(p) to aggregation at getaway arm locations ease and treatment facility costs argon high if pick-up location does not follow already. discourse costs at pickup locations be high. ? Information agreement to a greater extent elaborative and sophisticated, extra system at the pickup locations. ? serving factors ? Response times same to deli genuinely with package carriers ? guest determine worse since node has to pickup the occurrence himself. On the early(a) hand, since customer do not need to wait at home for delivery and customer rear end pay cash at the pickup location instead of paying online in advance, slightly customers may like pickup option better. Time to grocery store is confusable to other options with manufacturer storage ? Order visibleness is very important. Customers should be cognizant when their orders arrive. ? Returns be easier to handle at pickup location. Returns push aside be aggregated and shipped stake from pickup locations. 18. 12. 2011 Fusun Ulengin RETAIL STORAGE WITH CUSTOMER PICKUPS ? Inventories argon stored in sell stores, customers mountain pass into the store to pick the items they want or items they have ordered online or by phone. Mixed order placement options. near handed-down option. 8. 12. 2011 Fusun Ulengin RETAIL STORAGE WITH CUSTOMER PICKUPS ? Cost Factors ? Inventory costs argon higher than other options as the inventories are disaggregated a nd held locally ? Transportation costs are debase than other solutions. Inexpensive modes shadower be used to replenish inventories at retail outlets. ? Facility costs are high. Many local facilities. ? Information system Minimal if there is no online ordination option. For online option more complex nurture system especially for order visibility. ? portion Factors Response times are very good. Same day pickup for virtually returns. ? convergence variety is lower than other options. ? Product avail mogul is costly to follow high. ? Customer experience depends on if the customer likes to shop or not. ? Time to market is highest. ? Order visibility is important if online orderliness is allowed. ? Returns ordure be handled at the stores easily. 18. 12. 2011 Fusun Ulengin E-BUSINESS AND THE dispersion mesh ? Impact of E-Business on Customer Service ? Response time For product that notify be downloaded very fast.For corporeal products takes longer to fulfill an order than lawful retail stores. ? Product variety easier to passing game variety than brick-and-mortar store. (Amazon imagine the retail store with the same variety offered by Amazon) ? Product availability Better information meeting and forecasting. Better mach between tack and necessary, meliorate product availability. ? Customer experience ? ? ? assenting 24 hour glide slope. Geographically eliminating the access limits. Customization customization of product and shopping experience. Dell, Amazon displays associate products) Convenience Making the purchase at where you are.. Increased speed of conducting business. (e. g. Use of old data for address info) ? Time to market Fast. A new product can be made available as soon as a the original unit is ready. Dell exploits this feature. ? Order visibility Critical to provide. Internet makes this happen. ? Returnability Harder issue compared to traditional stores since items are sent from a cardinal location usually. More returns wit h online purchases. 18. 12. 2011Fusun 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 place contact with customer. Dell v. s. HP. Flexible pricing, advancement and product portfolio ? Airline last-minute low cost seat, Dells ability of dynamic pricing depending on the instalment availability and demand. Efficient fund transfers quick and cheaper. Fusun Ulengin E-BUSINESS AND THE DISTRIBUTION NETWORK Impact of E-Business on Cost ? Inventory Better mach of return and demand, geographical aggregation lowers inventories. Ability of deferment also helps decrease inventory costs. ? Facilities and Handling ? ? ? ? Less and centralized facilities, fewer intermediaries lower facility cost. E-business can reduce the handling costs in order fulfilment by having the customer do some(a)(prenominal) part of the process, e . g. checking product availability, entering enlarge 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 normally higher cost due to change magnitude outbound transportation costs. For downloadable products, significantly little transportation cost. ? Information Shared demand information, better coordination and collaboration reduces the overall supply chain 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 apprise that e-business brings is not the same in all(prenominal) industry. ? Dell a success stratum while Webvan is a failure ? E-business-Scorecard can be used to help take root if e- business is appropriate for your business, how it effects your dispersion 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