Table of Contents
Objectives of the report 2
Comparative Performance analysis of Delivery Network Designs 3
Factors Influencing Distribution Network Design 3
Design Options for a Distribution Network 4
Comparative performance analysis among six distribution networks 7
Response time 7
Product variety 8
Product availability 8
Customer experience 9
Order visibility 9
Facilities and handling 11
Distribution refers to the steps taken to move and store a product from supplier stage to a ...view middle of the document...
It also help us for fulfillment our knowledge for supply chain management and make our self appropriate for current job market.
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Comparative Performance analysis of Delivery Network Designs
Distribution refers to the steps taken to move and store a product from the supplier stage to a customer stage in the supply chain. Distribution is a key driver of the overall profitability of a firm because it directly impacts both the supply chain cost and the customer experience. Good distribution can be used to achieve a variety of supply chain objectives ranging from low cost to high responsiveness. As a result, companies in the same industry often select very different distribution networks.
In this paper we provide a framework and identify key dimensions along which to evaluate the performance of any distribution network.
Factors Influencing Distribution Network Design
At the highest level, performance of a distribution network should be evaluated along two dimensions:
1. Cost factor
2. Service factor
Changing the distribution network design affects the following supply chain costs:
• Facilities and handling
Customer service consists of many components; we will focus on those measures that are influenced by the structure of the distribution network. These include:
• Response time
• Product variety
• Product availability
• Customer experience
• Order visibility
Design Options for a Distribution Network
There are six distinct distribution network designs that are
Classified as follows:
1. Manufacturer storage with direct shipping
2. Manufacturer storage with direct shipping and in-transit merge
3. Distributor storage with package carrier delivery
4. Distributor storage with last mile delivery
5. Manufacturer / distributor storage with costumer pickup
6. Retail storage with customer pickup
We now describe each distribution option and discuss its...