JIAOTONG UNIVERSIT 96 Supply Chain Management Lecture 5 Distribution Networks Instructor(s) Prof.Jianjun Gao Department of Automation School of Electronic Information and Electrical Engineering SCM by J.J.Gao SEIEE AU406
Supply Chain Management Instructor(s) SEIEE AU406 + - SCM by J. J. Gao Distribution Networks Prof. Jianjun Gao Department of Automation School of Electronic Information and Electrical Engineering Lecture 5
Outline The Role of Distribution in the Supply Chain Factors Influencing Distribution Network Design Design Options for a Distribution Network E-Business and the Distribution Network Distribution Networks in Practice Summary of Learning Objectives SEIEE AU406 4-2
+ - SEIEE AU406 4-2 Outline The Role of Distribution in the Supply Chain Factors Influencing Distribution Network Design Design Options for a Distribution Network E-Business and the Distribution Network Distribution Networks in Practice Summary of Learning Objectives
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 国 Distribution occurs between every pair of stages Distribution directly affects cost and the customer experience and therefore drives profitability Choice of distribution network can achieve supply chain objectives from low cost to high responsiveness Examples: Wal-Mart distribution helps company to provide high availability levels of common products in low price. Seven-Eleven Japan:distribution provides high level of customer responsiveness. SEIEE AU406 4-3
+ - SEIEE AU406 4-3 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 Distribution occurs between every pair of stages Distribution directly affects cost and the customer experience and therefore drives profitability Choice of distribution network can achieve supply chain objectives from low cost to high responsiveness Examples: Wal-Mart : distribution helps company to provide high availability levels of common products in low price. Seven-Eleven Japan: distribution provides high level of customer responsiveness
Design distribution networks ■ Includes two phases: 国 Phase 1:design the broad structure of the distribution networks Whether the product should be sold directly or use intermediary. Where should the products be stored? How to deliver the products?Using carrier or not? Phase 2:Convert the broad structure to specific location,capability,capacity and demand allocation. The Phase 2 design will given in next lectures SEIEE AU406 4-4
+ - SEIEE AU406 Design distribution networks Includes two phases: Phase 1: design the broad structure of the distribution networks Whether the product should be sold directly or use intermediary. Where should the products be stored? How to deliver the products? Using carrier or not? Phase 2: Convert the broad structure to specific location, capability, capacity and demand allocation. The Phase 2 design will given in next lectures 4-4
Some example of distribution networks Before 2007,Dell distributes its PC directly to end customer.(wait for few days) ■ HP distribute through seller.(get PC immediately) ■ Starting from 2007,Dell also sells PC through retailer. Gateway:Open Gateway Country Stores,where customers could examine the products and have sales people help them configure a PC for their needs. However,Gateway chooses to sell no products at the stores, shop directly to customer. By April 2004,Gateway closed all its stores. Apple Computer,in contrast,has opened may retailer stores. These PC companies have chosen different distribution models.How to evaluate these choice?Which one is better? SEIEE AU406 4-5
+ - SEIEE AU406 Some example of distribution networks Before 2007, Dell distributes its PC directly to end customer.(wait for few days) HP distribute through seller. (get PC immediately) Starting from 2007, Dell also sells PC through retailer. Gateway: Open Gateway Country Stores, where customers could examine the products and have sales people help them configure a PC for their needs. However, Gateway chooses to sell no products at the stores, shop directly to customer. By April 2004, Gateway closed all its stores. Apple Computer, in contrast, has opened may retailer stores. 4-5 These PC companies have chosen different distribution models. How to evaluate these choice? Which one is better?