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3. Designing Distribution Networks. The Role of Distribution in the Supply Chain. Distribution – the steps taken to move and store a product from the supplier stage to the customer stage in a supply chain
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3 Designing Distribution Networks
The Role of Distributionin the Supply Chain • Distribution – the steps taken to move and store a product from the supplier stage to the customer stage in a supply chain • Drives profitability by directly affecting supply chain cost and the customer experience • Choice of distribution network can achieve supply chain objectives from low cost to high responsiveness
配送在供應鏈中扮演的角色 • 配送是指在供應鏈中從供應商至顧客產品之運送與儲存的步驟 • 配送是公司所有獲利的關鍵,因為其直接影響到供應鏈中的成本與顧客的經驗 • 配送網路的選擇可以達到供應鏈中從低成本至高回應的不同目標
Factors InfluencingDistribution Network Design • Elements of customer service influenced by network structure: • Response time • Product variety • Product availability • Timetomarket • Customer experience • Order visibility • Returnability
配送網路設計的影響因素 • 顧客服務受到配送網路架構影響的因素: • 回應時間 • 產品多樣性 • 產品可獲性 • 上市時間 • 顧客經驗 • 訂單能見度 • 產品退回性
Design Options for a Distribution Network • Manufacturer storage with direct shipping • Manufacturer storage with direct shipping and in-transit merge • Distributor/retailer storage with carrier delivery • Distributor/retailer storage with last-mile delivery • Manufacturer/distributor storage with customer pickup • Retail storage with customer pickup • Combinations
配送網路的選擇設計 • 1. 製造商儲存並直接運送 • 2. 製造商儲存並直接運送及統籌轉運(In-Transit) • 3. 配送商/零售商儲存並由運輸公司配送 • 4. 配送商/零售商儲存但最後路程送達 • 5. 製造商/配送商儲存並由顧客取貨 • 6. 零售商儲存並由顧客取貨 • 7. 組合設計
Manufacturer Storage withDirect Shipping is best suited for • A large variety of low-demand, • High-value items, • Customer are willing to wait for delivery and accept several partial shipments. • Topostponecustomerization.
Manufacturer storage with direct shipping and in-transit merge
Manufacturer storage with direct shipping and in-transit merge • In-transitmergecombinespiecesoftheordercomingfromdifferentlocationssothatthecustomergetsasingledelivery. • Lowertransportationcosts • Bettercustomerexperience
Distributor/Retailer StoragewithCarrier Deliveryis best suited for • Slow-tofastmovingitems • Customerswantdeliveryfasterthanisofferedbymanufacturerstorage.
Distributor/Retailer StoragewithLast Mile Delivery Last Mile Delivery Last Mile Delivery
CarrierDeliveryvs.Last Mile Delivery TheBestCare CarrierDelivery Last Mile Delivery
Retailer Storage withCustomer Pickup Distributor D.C./CenterofWarehouses Retailer Retailer Retailer Retailer Pickup Pickup Pickup
Delivery Networks for Different Product/Customer Characteristics
Impact of Online Sales on Customer Service • Response time to customers • Physical products take longer to fulfill than retail store • No delay for information goods • Product variety • Easier to offer larger selection • Product availability • Aggregating inventory and better information on customer preferences improves product availability
Impact of Online Sales on Customer Service • Customer experience • Improved access, customization, and convenience • Faster time to market • Order Visibility • Returnability • Harder with online orders • Proportion of returns likely to be much higher
Impact of Online Sales on Customer Service • Direct Sales to Customers • Social networking channels allow firms to directly pitch products and promotion • Flexible Pricing, Product Portfolio, and Promotions • Manage revenues from product portfolio more effectively than traditional channels • Promotion information can be conveyed to customers quickly and inexpensively • Efficient Funds Transfer