Characteristic of Effective Supply Chain Management

Innovations in transportation and telecommunications have introduced a number of opportunities for companies of all sizes and types to optimize their transportation networks. This paper provides a description concerning the design of a logistics network that consists of only one warehouse. A discussion concerning what steps will need to taken in order to design the optimal network is followed by a description of the information and data that is needed to make this determination. Finally, an assessment of the strategy will be employed in this network is followed by a summary of the research and important findings concerning these issues in the conclusion.

Answer 2- If there should be a single location for all three companies the inventory holding cost will reduce because the product is placing at one location instead of different three locations. Moreover, by doing this the insurance and misplacing of product of cost reduce but in transit of inventory will increase because the shipments are truck load and the distance between customers and distribution centre is far. Furthermore, with this the service level improved which means order fulfilment process improved too. In addition to this, the

Reorders are placed at the time of review (T), and the safety stock that must be reordered is:

Supply-chain management consists of developing a strategy to organize, control, and motivate the resources involved in the flow of services and materials within the supply chain. A supply chain strategy, an essential aspect of supply chain management, seeks to design a firm’s supply chain to meet the competitive priorities of the firm’s operations strategy.

Selection of distribution locations that can give a suitable place for customers to purchase company products is a very important way to enhance the distribution advantage. Reliable delivery timing is another point that Siemens can build on to create the needed differentiation through distribution. As Siemens depend on partners in many locations all over the world to perform the task of distributing its products, providing the needed training and support for those partners can help to enhance the distribution differentiation over competitors.

In this assignment I am going to evaluate the distribution systems in delivering goods and services for one of the well-known food sector business and that is ASDA. I am going to look at both the positive and the negative aspects of the distribution systems used and make recommendations for improvement with justified reasons

The corporation is seeking data to determine the optimal course of action for distribution, referred to hereafter as the supply chain. This analyst has researched several supply-chain strategies. These strategies will be presented in this report. The analyst will also provide a concerted

Agrifarm Company’s main objective is to determine the proper distribution, within a distribution network, to minimize the total shipping costs to deliver carloads from origin to the hubs and finally to the customers. To do so, we are given two distribution cost tables that explain the processing center shipping costs, meaning origin to hubs, and the customer shipping costs, meaning from hubs to the final customer. Therefore, the cost to ship rail cars of grain from the origins and hubs will determine the proper distribution of rail cars from origin to destination.

To design a single-warehouse network, I would need to determine the optimal location of the warehouse, its overall capacity, and the amount of space that will be allocated for each SKU or product. A warehouse that is not strategically located in an equidistance manner to each region may cause higher than normal transportation costs. If capacity is too low, inbound shipments could be delayed and service levels will decline.

Locating a central distribution center will increase the control over inventory for Consolidated. Having small point of operations will reduce the amount of inventory that will be maintained at the sites. Each location will have different needs and only stocking the immediate customer needs at each location will reduce overall costs. The purchasing discount will be easier to maintain if all shipments come to one location which will also save the company money. Having a couple small vans deliver to regional locations within an hour is less costly than ordering extra just to meet the minimum purchase discount. The cost of shipping to small locations will be minimal and will save the company and customers money in the long term. If the contractors know of items that they will need for a job they can inform Consolidated and the special items can be delivered to the job site or picked up at the regional office. Communication is key and willing to provide the best service in a timely manner will reduce cost and increase profit.

 Good distribution concepts with no one store more than 6 hrs. away from warehouse.

Our approach was to facilitate the demand with respect to the market. We penetrated the market by building factory in Fardo and building warehouses to the respective regions, Caleopeia, Sorange, Entworpe, Tyran. Another component that we had to consider was finding the optimal cost to increase market share and increase our profit margin. Discussion on the logistics will be discussed thoroughly, which affected our decision points and our overall outcome. There are a few questions we needed to answer before we built a road map to our strategy i.e. figuring out where to build the factory and warehouse, estimate the demand of the four regions and Fargo region, should we change capacity, adjust ordering point with respect to quantity, and also

Operating such dynamic distribution centers is usually very expensive and allows possibilities of product wastage. The high capital requirement to run such large distribution centers produces a natural barrier to entry and smaller firms frizzle out if they try and compete with the larger firms.

They do not have their own distribution system because they put the responsibility trust in specialised merchants which have good

The most recommended distribution network suited for highly differentiated products would be drop-shipping network. It is the process where shipping avoids the retailers, meaning the retailer isn’t informed to hold any type of inventory for the customers, and instead, the products are directly delivered to the end customers from the manufacturers. In this network, the supply chain can divert and expand low level of inventory to a higher level of availability. It also gives an opportunity for manufacturers to reschedule the customization when necessary. This is excellent for sellers that are able to build to order, and for end customers who wants highly-differentiated products that are in low-demand but are highly valued and are willing to wait for delivery.