PowerPoint presentation to accompany Chopra and Meindl Supply Chain Management, 5e Global Edition 1-1 Copyright ©2013 Pearson Education. 1-1 Copyright ©2013 Pearson Education. 1-1 Copyright ©2013 Pearson Education. 4-1 Copyright ©2013 Pearson Education. 3 Designing Distribution Networks

3-2 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

3-3 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 配送在供應鏈中扮演的角色

3-4 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

3-5 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 配送網路設計的影響因素

3-6 Desired Response Time and Number of Facilities

3-7 期望的回應時間與設施數目 的關係

3-8 Inventory Costs and Number of Facilities

3-9 設施數目與存貨成本的關係

3-10 Transportation Costs and Number of Facilities

3-11 設施數目與運輸成本的關係

3-12 Facility Costs and Number of Facilities

3-13 設施數目與設施成本的關係

3-14 Logistics Cost, Response Time, and Number of Facilities

3-15 不同設施數目的物流成本與 回應時間的變化

3-16 Design Options for a Distribution Network 1. Manufacturer storage with direct shipping 2. Manufacturer storage with direct shipping and in- transit 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

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 配送網路的選擇設計

3-18 Manufacturer Storage with Direct Shipping

3-19 製造商儲存並且直接運送

3-20 Manufacturer Storage with Direct Shipping Cost FactorPerformance InventoryLower 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. TransportationHigher 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. InformationSignificant investment in information infrastructure to integrate manufacturer and retailer.

3-21 Manufacturer Storage with Direct Shipping Service FactorPerformance Response timeLong 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 varietyEasy to provide a high level of variety. Product availabilityEasy 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 marketFast, with the product available as soon as the first unit is produced. Order visibilityMore difficult but also more important from a customer service perspective. ReturnabilityExpensive and difficult to implement.

3-22 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.

3-23 Manufacturer storage with direct shipping and in-transit merge

3-24 統籌轉運網路

3-25 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

3-26 Distributor/Retailer Storage with Carrier Delivery

3-27 配送商 / 零售商儲存並由運輸 公司配送

3-28 Distributor/Retailer Storage with Carrier Delivery Cost FactorPerformance InventoryHigher than manufacturer storage. Difference is not large for faster moving items but can be large for very slow- moving items. TransportationLower than manufacturer storage. Reduction is highest for faster moving items. Facilities and handling Somewhat higher than manufacturer storage. The difference can be large for very slow-moving items. InformationSimpler infrastructure compared to manufacturer storage.

3-29 Distributor/Retailer Storage with Carrier Delivery Service FactorPerformance Response timeFaster than manufacturer storage. Product varietyLower than manufacturer storage. Product availability Higher cost to provide the same level of availability as manufacturer storage. Customer experience Better than manufacturer storage with drop-shipping. Time to marketHigher than manufacturer storage. Order visibilityEasier than manufacturer storage. ReturnabilityEasier than manufacturer storage.

3-30 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.

3-31 Distributor/Retailer Storage with Last Mile Delivery Last Mile Delivery

3-32 配銷商 / 零售商儲存並且最後 路程送達

3-33 Carrier Delivery vs. Last Mile Delivery Last Mile Delivery Carrier Delivery The Best Care

3-34 Distributor/Retailer Storage with Last Mile Delivery Cost FactorPerformance InventoryHigher than distributor storage with package carrier delivery. TransportationVery 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. InformationSimilar to distributor storage with package carrier delivery.

3-35 Distributor/Retailer Storage with Last Mile Delivery Service FactorPerformance Response timeVery quick. Same day to next-day delivery. Product varietySomewhat 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 marketEasier to implement than manufacturer storage or distributor storage with package carrier delivery. Order visibilityEasier to implement than other previous options. ReturnabilityMuch easier, but harder and more expensive than a retail network.

3-36 Manufacturer/Distributor Storage with Customer Pickup

3-37 製造商 / 配送商儲存並且顧客 取貨

3-38 Retailer Storage with Customer Pickup Distributor D.C. / Center of Warehouses Retailer Pickup

3-39 零售商儲存並且顧客取貨

3-40 Comparative Performance of Delivery Network Designs

3-41 配送網路設計各項績效比較

3-42 Delivery Networks for Different Product/Customer Characteristics

3-43 適合不同產品和顧客特性的 配送網路

3-44 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

3-45 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

3-46 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