1 / 48

CHAPTER 11

CHAPTER 11. SUPPLY CHAIN STRATEGY. SUPPLY CHAIN STRATEGY. Supply Chain Process Distribution Functions Distribution Strategy Channels of Distribution Vertical Marketing Systems Wholesaling Strategy. SUPPLY CHAIN PROCESS. RAW MATERIALS & COMPONENT PARTS. MANUFACTURING/ASSEMBLY.

montrell-seamus
Télécharger la présentation

CHAPTER 11

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CHAPTER 11 SUPPLY CHAIN STRATEGY

  2. SUPPLY CHAIN STRATEGY • Supply Chain Process • Distribution Functions • Distribution Strategy • Channels of Distribution • Vertical Marketing Systems • Wholesaling Strategy

  3. SUPPLY CHAIN PROCESS RAW MATERIALS & COMPONENT PARTS MANUFACTURING/ASSEMBLY CHANNELS OF DISTRIBUTION CONSUMERS/USERS

  4. GLOBAL SUPPLY CHAIN EXAMPLES • Penny’s shirts • Vegpro Kenya • Whirlpool

  5. REPLACEMENT SHIRT PROCESS Saturday Customer buys a new shirt in a Penny’s store in Atlanta Monday Hong Kong computer operator processes order Wednesday Worker in Taiwan ships shirt to the Penny’s store

  6. KENYAN PRODUCE BUSINESS MODEL Kenyan produce shipped 300 tons daily to Europe Days from harvest until 2 days arrival to Europe Average days in U.S. for U.S 7 days produce to arrive in stores

  7. WHIRLPOOL SUPPLY CHAIN STRATEGY • Replaced 41 outdated sites with 10 regional distribution centers • Segregated slow-moving goods from fast-moving goods • Combined ordering and delivering function

  8. DISTRIBUTION FUNCTIONS • Transportation – moving products • Assorting/sorting – buying/breaking bulk • Storage – storing products • Inventory – physical count of products

  9. TRANSPORTATION SELECTION+ (STRONG) – (WEAK) ModeSpeedCostAccess Rail Trucking + Air + - Water - + -

  10. INTERMODAL TRANSPORTTION CHOICES • Rail • Trucking • Water

  11. SHIPPING CONTAINER OF WINE Bottled Wine 9,900 Liters Plastic Bags 24,000 Liters

  12. ASSORTING AND SORTING Assorting Stage Buys in Bulk Sorting Stage Breaks Bulk Manufacturer Wholesaler Retailer

  13. STORAGE MANAGEMENT • Warehouses • Shipping containers • Port of Houston

  14. GEICO U.S. AUTO INSURANCE MARKET 1995 2.5% 2013 9.7%

  15. INVENTORY MANAGEMENT • Just-in-time • Safety stock • Inventory theft

  16. NEED FOR INVENTORY • Time lag from supplier to final buyer • Uncertainty in supply and demand • Economy of scale in cheaper unit cost of inventory

  17. INVENTORY IS WORKING CAPITAL THAT IS NOT EARNING ANY MONEY

  18. COMPANY INVENTORY STRATEGY Company% of Total% of Total% of Out-of ProductsProductsSalesStock Goal A 20% 80% 1% B 60% 15% 5% C 20%5% 20% 100% 100%

  19. DISTRIBUTION STRATEGY • Intensive Distribution • Selective Distribution • Exclusive Distribution

  20. DISTRIBUTION CHOICES FOR MANUFACTURERS • Control Power struggle between the manufacturer and intermediaries • Coverage Coverage strategy for the manufacturer • Cost Cost of distribution

  21. MANUFACTURER DISTRIBUTION StrategyCostControlCoverage Intensive Weak Weak Strong Distribution Selective Distribution Exclusive Distribution Strong Strong Weak

  22. INTENSIVE DISTRIBUTION • Pepsi Cola • Cigarettes • M&Ms

  23. SELECTIVE DISTRIBUTION • Furniture • Shoes • Clothes

  24. EXCLUSIVE DISTRIBUTION • Tiffany • Rolex • Cheesecake Factory

  25. HUB AND SPOKE DISTRIBUTION STRATEGY • United Airlines • Walmart Stores HUB

  26. CHANNELS OF DISTRIBUTION • Consumer Channels • Business Channels

  27. CONSUMER CHANNELS No Intermediary One Intermediary Two Intermediaries Man/Retailer Man Man Wholesaler Retailer Retailer Consumer Consumer Consumer

  28. BUSINESS CHANNELS No Intermediary One Intermediary Two Intermediaries Man Man Man Selling Agent Industrial Distributor Industrial Distributor User User User

  29. AUTOMOBILE INSURANCE CHANNELS AETNA STATE FARM GEICO Independent Agents State Farm Agents Consumer Consumer Consumer

  30. GEICO SHARE OF U.S. AUTOMOBILE INSURANCE • 2.5% • 2012 9.7%

  31. BERKSHIRE HATHAWAY FLOAT • YearBillion • 2 • 28 • 2012 73

  32. VERTICAL MARKETING SYSTEMS • Corporate VMS • -Ownership • Administered VMS • - Size and Power • Contractual VMS • -Franchise/ Contract

  33. VERTICAL MARKETING SYSTEM CONFLICTS Types of VMSConflicts Corporate VMS Ownership – no conflict Administrative VMS Coke vs. Costco Contractual VMS Dr. Pepper vs. Dublin Dr. Pepper

  34. CORPORATE VMS EXAMPLES • Kroger • James Avery

  35. ADMINISTERED VMS EXAMPLES • General Electric • Costco • Sony

  36. CONTRACTUAL VMS EXAMPLES • Toyota • Burger King • Dr Pepper

  37. WHOLESALING STRATEGY • Merchant Wholesalers - Take title - Independently owned • Agents Wholesalers - Do not take title - Independently owned

  38. MERCHANT WHOLESALERS • Full-service - offers complete wholesaling service • Limited-service - offers specialized wholesaling service

  39. FULL-SERVICE WHOLESALER EXAMPLES • Sysco • Cardinal Health Grocers Supply • Li and Fung

  40. THREE MAJOR DRUG WHOLESALERS(with 95% market share) • Cardinal Health • AmerisourceBergen • McKesson

  41. LIMITED-SERVICE WHOLESALER EXAMPLES TypesDescription Drop Shipper No physical possession Rack Jobber Provides and stocks racks

  42. DROP SHIPPING EXAMPLES • Coal broker • eBay • Infomercial products

  43. ADVANTAGES OF DROP SHIPPING • No upfront inventory purchase • Positive cash flow cycle • Business can operate out of home

  44. RACK JOBBER EXAMPLES • Toys • Paper backs • Music CDs

  45. AGENT WHOLESALERS • Manufacturing Agents • Selling Agents • International Agents

  46. MANUFACTURING AGENT EXAMPLES • Electrical products • Furniture • Apparel

  47. SELLING AGENT EXAMPLES • Textiles • Chemicals • Industrial Equipment

  48. TRENDS IN WHOLESALING • Expanding in global distribution • Reduction of small wholesalers • Major cost efficiencies

More Related