WhatIstheAppropriateSupplyChain Strategy and ProductDesign Strategy for Each ProductType?EachrequiresadifferentsupplychainstrategyDevelopmentchainhastodealwiththediffering level of demand uncertainty11-6
11-6 What Is the Appropriate Supply Chain Strategy and Product Design Strategy for Each Product Type? ⚫ Each requires a different supply chain strategy ⚫ Development chain has to deal with the differing level of demand uncertainty
FrameworkforMatchingProductDesignand SupplyChainStrategiesProductProductintroductionarchitecturefrequencyHModular.PC/fashionCell phoneengines.Pull systemsPush systems.DynamicpricingB6·Pasta/diapers.Furniture/tiresPushsystem.Push-pullDADemandIntegralLHuncertaintyLSupplychain-Pull-Push-strategyFIGURE11-3:Theimpact of demanduncertainty andproductintroductionfrequency on productdesignand supply chain strategy11-7
11-7 Framework for Matching Product Design and Supply Chain Strategies FIGURE 11-3: The impact of demand uncertainty and product introduction frequency on product design and supply chain strategy
11.2 Design for Logistics (DFL)Productandprocessdesignthathelptocontrol logistics costs and increase servicelevels·EconomicpackagingandtransportationConcurrentandparallelprocessingStandardization11-8
11-8 11.2 Design for Logistics (DFL) ⚫ Product and process design that help to control logistics costs and increase service levels ⚫ Economic packaging and transportation ⚫ Concurrent and parallel processing ⚫ Standardization
Economic Transportation andStorageDesignproductssothattheycanbeefficientlypacked and storedDesignpackagingsothatproductscanbeconsolidated atcross dockingpointsDesignproductsto efficientlyutilizeretailspace11-9
11-9 Economic Transportation and Storage ⚫ Design products so that they can be efficiently packed and stored ⚫ Design packaging so that products can be consolidated at cross docking points ⚫ Design products to efficiently utilize retail space
ExamplesIkeaWorld's largest furnitureretailer131stores in21countries?Large stores, centralized manufacturingcompactly andefficiently packedproductsRubbermaidClear Classic food containers-designed to fit14x14"Wal-Martshelves11-10
11-10 Examples ⚫ Ikea ⚫ World’s largest furniture retailer ⚫ 131 stores in 21 countries ⚫ Large stores, centralized manufacturing, compactly and efficiently packed products ⚫ Rubbermaid ⚫ Clear Classic food containers - designed to fit 14x14” Wal-Mart shelves