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Notes For Week 10

The document discusses various distribution and logistics services including assembly, inventory management, product kitting and customization, product postponement, quality control, recycling and returns management. It also covers key considerations for distribution facilities such as balancing space and equipment, addressing labor issues, and adapting to demand variations. Additional topics include distribution strategies, network design, determining the number and ownership of facilities, and facility-level factors like size, layout, product slotting, and transportation integration.

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19 views

Notes For Week 10

The document discusses various distribution and logistics services including assembly, inventory management, product kitting and customization, product postponement, quality control, recycling and returns management. It also covers key considerations for distribution facilities such as balancing space and equipment, addressing labor issues, and adapting to demand variations. Additional topics include distribution strategies, network design, determining the number and ownership of facilities, and facility-level factors like size, layout, product slotting, and transportation integration.

Uploaded by

nandar.myint
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

Assembly services

-Handle limited/Light assembly of products such as building and filing in store display units.

2.Ivventory management and visibility

Provide consignment and vendor-managed inventory programs.

3.Product kitting, building, and unbundling.

Build customized combinations of products to meet specific customer requirements such as all
components needed for a customized smartphone bundle or repacking a combination of goods for retail
promotion (gift with purchase or multipack goods)

4.Produt postponement

-Conduct specific activites (assembly,sizing,packaging and or labeling) that have been delayed

6.Quality control

Verify the product quality condition and count before it is delivered to the customer.

7.Recycling, repair and returns management

Provide services related to reverse flows of products from customers such as inspection, disposal,
refurbishment or credit.

Key Distribution Tradeoffs

Facility-Level Tradeoffs

1.Space Vs Equipment

The larger the facility and the more spack used


1.Labour availability issues

In the US,Low employment rates

Nature of DC operations work creates ongoing turnover challenges

Smaller labour pool due to aging workforce

Solutiib

Reviait

Demand Variation

Seasonal demand creates space & equipment utilization challenges, as well as labour retention problem.

Solution

3rd party logistics facility use during peak season, share

Increasing customer requirements

Strong desire for value added capabilities and services.

Growing expectations for faster, smaller, and more frequent order fulfillment

Solution – Flexible fulfilment processes

Distribution Planning & Strategy

Distribution strategies

Should tailor to products being handled, customer requirements and available internal expertise and
resources

Interrelated planning decisions must be made to ensure that the strategy can be executed at a
reasonable cost while supporting supply chain demands.

Capacity requirements

Product flow requirements of the supply chain

1.Direct shipment of goods from the manufacturer to retailers


Network design Issues (Number & location)

Determining the number of facilities

Transportation costs

An increase in the number of warehouses brings the warehouses closer to the customer and market area
, reducing outb

Inventory costs

Warehousing costs

Different ownership

1.Pravite facilities

Company operated.

2.Public facilities

Traditional outsourcing distribution option

Traditional outsourcing

3.Contract facilities

Another outsourcing option in which a 3PL like DHL Suppy chain provides a combination of dristribution
service

They dedicate space ,labor and equipment to a client specific product needs with the goal if of providing
integrated, accurate distribution services.

These facilities can address the specialized handling requirements for critical products such as
pharmaceuticals, electronics and other high value goods.

Facility considerations

Size

Typically, the more facilities in the distribution network, the smaller they need to be

Demand forecasts for the facility can be used to create a rough estimate of space requirements

Given forecasted demand, each facility must be large enough to:


Accommodate the distribution activities that will be performed within the four walls.

Interface with the transportation network.

Layout

Decisions regarding aisle space, shelving, material-handling equipment, and interiors dimension of the
facility.

Use a one story faciltuy _results in lower construction

Production location (slotting)

Proper product slotting can improve fulfillment performance and generate other adcantages for the
organization and its customers.

Advantages

Picking

Slotting the placement

Popularity

Unit size

Cube

Transportation

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