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1、 2007 Pearson Education4-1Chapter 4Designing the Distribution Network in a Supply ChainSupply Chain Management(3rd Edition) 2007 Pearson Education4-2OutlineuThe Role of Distribution in the Supply ChainuFactors Influencing Distribution Network DesignuDesign Options for a Distribution NetworkuE-Busine

2、ss and the Distribution NetworkuDistribution Networks in PracticeuSummary of Learning Objectives 2007 Pearson Education4-3The Role of Distributionin the Supply ChainuDistribution: the steps taken to move and store a product from the supplier stage to the customer stage in a supply chainuDistribution

3、 directly affects cost and the customer experience and therefore drives profitabilityuChoice of distribution network can achieve supply chain objectives from low cost to high responsivenessuExamples: Wal-Mart, Dell, Proctor & Gamble, Grainger 2007 Pearson Education4-4Factors InfluencingDistribution

4、Network DesignuDistribution network performance evaluated along two dimensions at the highest level: Customer needs that are met Cost of meeting customer needsuDistribution network design options must therefore be compared according to their impact on customer service and the cost to provide this le

5、vel of service 2007 Pearson Education4-5Factors InfluencingDistribution Network DesignuElements of customer service influenced by network structure: Response time Product variety Product availability Customer experience Order visibility ReturnabilityuSupply chain costs affected by network structure:

6、 Inventories Transportation Facilities and handling Information 2007 Pearson Education4-6Service and Number of Facilities (Fig. 4.1)Number of FacilitiesResponse Time 2007 Pearson Education4-7The Cost-Response Time FrontierLocal FGMixRegional FGLocal WIPCentral FGCentral WIPCentral Raw Material and C

7、ustom productionCustom production with raw material at suppliersCostResponse TimeHiLowLowHi 2007 Pearson Education4-8Inventory Costs and Numberof Facilities (Fig. 4.2)Inventory CostsNumber of facilities 2007 Pearson Education4-9Transportation Costs andNumber of Facilities (Fig. 4.3)TransportationCos

8、tsNumber of facilities 2007 Pearson Education4-10Facility Costs and Numberof Facilities (Fig. 4.4)FacilityCostsNumber of facilities 2007 Pearson Education4-11Total Costs Related to Number of Facilities 2007 Pearson Education4-12Variation in Logistics Costs and Response Time with Number of Facilities

9、 (Fig. 4.5) 2007 Pearson Education4-13Design Options for a Distribution NetworkuManufacturer Storage with Direct ShippinguManufacturer Storage with Direct Shipping and In-Transit MergeuDistributor Storage with Carrier DeliveryuDistributor Storage with Last Mile DeliveryuManufacturer or Distributor S

10、torage with Consumer PickupuRetail Storage with Consumer PickupuSelecting a Distribution Network Design 2007 Pearson Education4-14Manufacturer Storage withDirect Shipping (Fig. 4.6)ManufacturerRetailerCustomersProduct FlowInformation Flow 2007 Pearson Education4-15In-Transit Merge Network (Fig. 4.7)

11、FactoriesRetailerProduct FlowInformation FlowIn-Transit Merge by CarrierCustomers 2007 Pearson Education4-16Distributor Storage withCarrier Delivery (Fig. 4.8)FactoriesCustomersProduct FlowInformation FlowWarehouse Storage by Distributor/Retailer 2007 Pearson Education4-17Distributor Storage withLas

12、t Mile Delivery (Fig. 4.9)FactoriesCustomersProduct FlowInformation FlowDistributor/Retailer Warehouse 2007 Pearson Education4-18Manufacturer or Distributor Storage with Customer Pickup (Fig. 4.10)FactoriesRetailerPickup SitesProduct FlowInformation FlowCross Dock DCCustomer FlowCustomers 2007 Pears

13、on Education4-19Comparative Performance of Delivery Network Designs (Table 4.7)InformationFacility & HandlingTransportationInventoryReturnabilityOrder VisibilityCustomer ExperienceProduct AvailabilityProduct VarietyResponse TimeManufacturer storage with pickupDistributor storage with last mile deliv

14、eryDistributor Storage with Package Carrier DeliveryManufacturer Storage with In-Transit Merge Manufacturer Storage with Direct ShippingRetail Storage with Customer Pickup 111111111111111112222222222333333333344444444444445555555665 2007 Pearson Education4-20Linking Product Characteristics and Custo

15、mer Preferences to Network DesignLow customer effortHigh product varietyQuick desired responseHigh product valueMany product sourcesVery low demand productLow demand productMedium demand productHigh demand productManufacturer storage with pickupDistributor storage with last mile deliveryDistributor

16、Storage with Package Carrier DeliveryManufacturer Storage with In-Transit Merge Manufacturer Storage with Direct ShippingRetail Storage with Customer Pickup+2+2+2+2+2+2+2+2+2+2+1+1+1+1+1+1+1+1+1+1+1+1+1+1+10000000000-1-1-1-1-1-1-1-1-1-1-1-2-2-2-2-2-2-2-2 2007 Pearson Education4-21E-Business and the

17、Distribution NetworkuImpact of E-Business on Customer ServiceuImpact of E-Business on CostuUsing E-Business: Dell, Amazon, Peapod, Grainger 2007 Pearson Education4-22Distribution Networks in PracticeuThe ownership structure of the distribution network can have as big as an impact as the type of distribution networkuThe choice of a distribution network has very long-term consequencesuConsider whether an exclusive distribution strategy is advantageousuProduct, price, commoditization, and criticality have an impact on the type of distribution system prefe

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