Professional Documents
Culture Documents
Distribution and
Logistics
Course Objective
Management
Explain the Factors Contributing to Bull Whip
Effect
Explain the Types of Retail Supply Chain
Models
Describe the Role of Information Technology in
Retail
SCM
Explain
the Role of Reverse Logistics in Retail
SCM
List the Challenges of Retail SCM
Introduction
s
U
&
u
o
Y
Introduction
Introduction
Introduction
Introduction
Introduction
Introduction
Introduction
Introduction
Introduction
Introduction
LLeett u
uss llo
oo
okk aatt tth
hee vvaarriio
aassp
ou
peeccttss o
uss
off R
Re
t
eta
aiil S
l SC
D
CM
Diissttrriib
M
bu
t
i
utio
n
o
na
d
an
LLo
og
i
s
gisttiiccss in nd
in d
deettaaiill..
Internal factors
Customer
satisfaction
Technology change
Connections
Multi-echelon
decision making
Scratched together
partners
Flexible
manufacturing
Efficient operation
Agility response
Negative effects
Informationdistortion/delay
Bullwhip effect
Boom and bust
1
2
3
Distribution Strategy:
Control of operations, delivery scheme, mode of
transportation, replenishment strategy and
transportation control
Trade-offs in Logistics:
All the activities must be well coordinated to achieve
the lowest total logistics cost. Trade-offs may increase
the total cost if only one of the activities is optimized
XECUTIO
This
process
helps plan
the most
desirable
physical
locations
and their
types.
These
desirable
locations will
constitute the
retail supply
chain for
most efficient
flow of
materials and
merchandise.
Supply
chain
network
design is a
critical
process for
distributionintensive
industries
such as
retail.
Together, this
network
creates a
complex set of
flow paths
along which
the
merchandise
can flow.
Logistics is the
backbone on which
Retail Supply Chains are
driven.
Logistics refers to
management of flow of
goods and supplies
involving information,
data and documentation
between two entities or
points.
3
12
There are three key strategies that are used by retailers
for logistics management. They are as follows:
Flow-Time
Analysis
Crossdocking
Flow-Time Analysis
3
Flow-Time
Analysis
High
Low
Demand of uncertainty
Pull
Customization is High
Demand is uncertain
Scale economies are
Low
E.g., Computer
Peripherals
Demand is uncertain
Scale economies are
High
Low economies of
scale
E.g., Furniture
Uncertainty is low
Low economies of
scale
Push-pull supply
chain
E.g., Stationeries
Low
Push
High
Economies of scale
Pull
Push
Reporting Function
Cycle Count Process
Operations Front
Functions
Inventory Front
Functions
Let us look at each in detail.
Customer
Supplier
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