Transcript Designing Distribution Networks PowerPoint presentation to accompany Chopra and Meindl Supply Chain Management, 5e Global Edition Copyright ©2013 Pearson Education. 1-1 4-1

3
Designing
Distribution
Networks
PowerPoint presentation to accompany
Chopra and Meindl Supply Chain Management, 5e
Global Edition
Copyright ©2013 Pearson Education.
1-1
4-1
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

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
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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
3-3
Factors Influencing
Distribution Network Design

Elements of customer service
influenced by network structure:

Response time

Product variety

Product availability

Time to market

Customer experience

Order visibility

Returnability
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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
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Desired Response Time and
Number of Facilities
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期望的回應時間與設施數目
的關係
3-7
Inventory Costs and Number
of Facilities
3-8
設施數目與存貨成本的關係
3-9
Transportation Costs and
Number of Facilities
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設施數目與運輸成本的關係
3-11
Facility Costs and Number
of Facilities
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設施數目與設施成本的關係
3-13
Logistics Cost, Response
Time, and Number of Facilities
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不同設施數目的物流成本與
回應時間的變化
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Design Options for a
Distribution Network
1.
Manufacturer storage with direct shipping
2.
Manufacturer storage with direct shipping and intransit merge
3.
Distributor/retailer storage with carrier delivery
4.
Distributor/retailer storage with last-mile delivery
5.
Manufacturer/distributor storage with customer
pickup
6.
Retail storage with customer pickup
7.
Combinations
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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（InTransit）

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
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Manufacturer Storage with
Direct Shipping
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製造商儲存並且直接運送
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Manufacturer Storage with
Direct Shipping
Cost Factor
Performance
Inventory
Lower costs because of aggregation. Benefits
of aggregation are highest for low-demand,
high-value items. Benefits are large if product
customization can be postponed at the
manufacturer.
Transportation
Higher transportation costs because of
increased distance and disaggregate shipping.
Facilities and
handling
Lower facility costs because of aggregation.
Some saving on handling costs if manufacturer
can manage small shipments or ship from
production line.
Information
Significant investment in information
infrastructure to integrate manufacturer and
retailer.
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Manufacturer Storage with
Direct Shipping
Service Factor
Performance
Response time
Long response time of one to two weeks because of
increased distance and two stages for order processing.
Response time may vary by product, thus complicating
receiving.
Product variety
Easy to provide a high level of variety.
Product availability
Easy to provide a high level of product availability
because of aggregation at manufacturer.
Customer
experience
Good in terms of home delivery but can suffer if order
from several manufacturers is sent as partial shipments.
Time to market
Fast, with the product available as soon as the first unit
is produced.
Order visibility
More difficult but also more important from a customer
service perspective.
Returnability
Expensive and difficult to implement.
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Manufacturer Storage with
Direct 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.

To postpone customerization.
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Manufacturer storage with direct
shipping and in-transit merge
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統籌轉運網路
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Manufacturer storage with direct
shipping and in-transit merge

In-transit merge combines pieces of the
order coming from different locations
so that the customer gets a single
delivery.

Lower transportation costs

Better customer experience
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Distributor/Retailer Storage
with Carrier Delivery
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配送商/零售商儲存並由運輸
公司配送
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Distributor/Retailer Storage
with Carrier Delivery
Cost Factor
Performance
Inventory
Higher than manufacturer storage.
Difference is not large for faster moving
items but can be large for very slowmoving items.
Lower than manufacturer storage.
Reduction is highest for faster moving
items.
Somewhat higher than manufacturer
storage. The difference can be large for
very slow-moving items.
Transportation
Facilities and
handling
Information
Simpler infrastructure compared to
manufacturer storage.
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Distributor/Retailer Storage
with Carrier Delivery
Service Factor
Performance
Response time
Faster than manufacturer storage.
Product variety
Lower than manufacturer storage.
Product
availability
Higher cost to provide the same level
of availability as manufacturer storage.
Customer
experience
Time to market
Better than manufacturer storage with
drop-shipping.
Higher than manufacturer storage.
Order visibility
Easier than manufacturer storage.
Returnability
Easier than manufacturer storage.
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Distributor/Retailer Storage
with Carrier Delivery
is best suited for

Slow- to fast moving items

Customers want delivery faster than is
offered by manufacturer storage.
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Distributor/Retailer Storage
with Last Mile Delivery
Last Mile Delivery
Last Mile Delivery
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配銷商/零售商儲存並且最後
路程送達
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Carrier Delivery vs.
Last Mile Delivery
The Best Care
Carrier Delivery
Last Mile Delivery
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Distributor/Retailer Storage
with Last Mile Delivery
Cost Factor
Performance
Inventory
Higher than distributor storage with
package carrier delivery.
Transportation
Very high cost given minimal scale
economies. Higher than any other
distribution option.
Facilities and
handling
Facility costs higher than manufacturer
storage or distributor storage with
package carrier delivery, but lower than
a chain of retail stores.
Information
Similar to distributor storage with
package carrier delivery.
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Distributor/Retailer Storage
with Last Mile Delivery
Service Factor
Performance
Response time Very quick. Same day to next-day delivery.
Product variety Somewhat less than distributor storage with package
carrier delivery but larger than retail stores.
Product
availability
More expensive to provide availability than any other
option except retail stores.
Customer
experience
Very good, particularly for bulky items. Slightly higher
than distributor storage with package carrier delivery.
Time to market
Easier to implement than manufacturer storage or
distributor storage with package carrier delivery.
Order visibility
Easier to implement than other previous options.
Returnability
Much easier, but harder and more expensive than a
retail network.
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Manufacturer/Distributor
Storage with Customer Pickup
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製造商/配送商儲存並且顧客
取貨
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Retailer Storage with
Customer Pickup
Distributor
D.C. / Center of
Warehouses
Retailer
Retailer
Retailer
Retailer
Pickup
Pickup
Pickup
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零售商儲存並且顧客取貨
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Comparative Performance of
Delivery Network Designs
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配送網路設計各項績效比較
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Delivery Networks for Different
Product/Customer Characteristics
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適合不同產品和顧客特性的
配送網路
3-43
Impact of Online Sales on
Customer Service
•
Response time to customers
–
–
•
Product variety
–
•
Physical products take longer to fulfill than
retail store
No delay for information goods
Easier to offer larger selection
Product availability
–
Aggregating inventory and better information
on customer preferences improves product
availability
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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
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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
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