Mitigating your supply chain risk during network design disruptions: 5 ways to handle the supply chain risk
Thursday, February 11, 2016
Performance characteristics of Retail Industry with Consumer Pick Up
The Inventory and cost impact "for retail consumer pick " Industry
In retail consumer site, the inventory is stored with the manufacturer or distributor warehouses, however, the consumer orders are based on online or the phone orders. In this case, online consumers give the order online or mobile. The "goods are picked up and are then sent to the designated pick up spots "which are then send to the consumer. This involves
1) Order by phone
2) Orders are delivered to stockists
3) merchandise are then shipped to pick up points
In this post, we take a look on how " inventory costs and performance" impact consumer retail pick up industry
Cost factor : Inventory
Performance: Higher than all other options
Cost factor: Transportation
Performance: lower that other options
Cost Factor : Facilities and handling
Performance: Higher than other options. The increase in handling site at the pick site can be significant for online and phone orders
Cost Factor : Information:
Performance: some investment in infrastructure needed for online and phone orders.
Monday, February 8, 2016
Supply Chain drivers that impacts Distribution Network Design
At the highest level performance of a distribution network shall be evaluated by following criterias
1) customer needs that are met
2) Cost of meeting customers; The the firm must consider the impact of customer service and the cost of meeting that service
Although there are customer values is impacted by various factors we discuss the measures influenced by the structure of the distribution network .Parameters that impact Customer needs are 1)response time for reaching customers
2)Product variety and SKU
3) Product availability
4) customer experience
5)Time to market
6) order visibility
7) Return ability Firms that are able to target customers who can tolerate long response time are required only a few locations that may eb far from the customer. These companies focus on increasing the capacity of each warehouse ot stores In contrast firms that target customers with shorter tolerance response time needs to have their location close to their facilities
6 supply chain drivers that impacts distribution network design
6 supply chain drivers that impacts distribution network design are
1) inventories
2)Transportation
3)facilities and handling
4)Response time :The other 2 drivers are 5) sourcing and 6)pricing
INVENTORY AND AFFECT ON SUPPLY CHAIN a)As the number of facilities in the supply chain increase the costs also increases .To decease the inventory costs ,firms try to consolidate and limit the number of facilities in supply chains c)For example with fewer facilities Amazon is able to turn its inventory 10 times a year, where as Barnes and nobles , with hundred of facilities is able to turn its inventory 3 times a year.
2) TRANSPORTATION AND SUPPLY CHAIN Transportation : Inbound transportation costs are the cost involved for bringing material into the factory.While outbound supply costs consist of goods are transported out of the facility Outbound transportation costs per unit tend to be higher than inbound costs because the inbound lot sizes are typically larger
3) FACILITIES PLANNING AND SUPPLY CHAIN facility cost decreases as the number of facilities decrease because consolidation of facilities allows firms tro exploit economics of scale 4)Response time : if the firm wants to reduce its response time it might have to increase the number of facilities beyond the point that it minimizes logistics cost.
Thursday, February 4, 2016
Explaining the model of Supply Chain in Online Retail Industry: Infographic
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explaining the model of supply chain in online retail industry: |
Friday, January 29, 2016
The 5 Biggest Industry Vertical Markets for Predictive Analytics
The Industries with the highest use of Predictive Analytics
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