Distribution and Supply Chain PDF

Distribution and Supply Chain
Supply Chain Management =Integration of all activities involving:

Sourcing of Raw material
Integration of goods
Production of final product
Delivering products in the market
Making products available to the consumer
Objectives of Supply Chain Management:
Superior value for customer in product and service delivery
Profitability
Reliability
Flexibility
Responsiveness
Turnover rate
Communication and co-ordination
Suvrashis Sarkar / Aug 2014
Channels of Distribution
Different type of distribution channels for different industries:
(1) Consumer:
FMCG
Consumer durables Electricals, Electronics
Automobile
Urban
&
Rural
Service Travel, Online trade, finance

(2) Industrial:
Raw materials Tank / Container / Bulk
Machinery / spares, equipment, etc.
Supply Chain
Consumer Business
Urban
Tangible
Intangible
Industrial Business
Rural
Tangible
Intangible
Channels of Distribution (eg: FMCG)

Manufacturer
Company Warehouse
Distributor
Retail
C & F Warehouse
Wholesale
MFR
Consumer
Retail
MFR
Distributor
Retail MFR
Consumer
(eg: Institutional business of FMCG)
Manufacturer
(factory)
Company Warehouse
Distributor
Retail
Institutional
Customer
and /or
Government
contract
Channels of Distribution (eg: Consumer durables)

Manufacturer
Company Warehouse
Dealer
C & F Warehouse
Wholesale
(Distributor / Retailer)
MFR
Up-country
Retail
Consumer
Dealer
Up-country
Retail
Wholesale
Consumer
(eg: Institutional orders of consumer durables)
Manufacturer
(factory)
Company Warehouse
Dealer
Institutional
customer
Government
contract
Supply chain and Logistics management

Raw material supplier
Equipment / machinery supplier
Factory
Material requirement planning
Production scheduling
Warehouse
Government
contract
Distributor
Institutional
customer
Capacity planning &

Distribution scheduling
Product stacking &
dispatch planning
Retail / MFR
e-tailing and ThirdThird-party Logistics

Brand owner &
Manufacturer
Company Warehouse
Courier
company
Third party
supplier
e-retailer
or
portal
Courier
company
Customer
What is Supply Chain all about ?

Supply Chain Management comprise of a co-ordination of processes like:
Planning
Organising
Directing
Staffing
Controlling
Point of Origin
to
Point of Consumption
Reporting
Budgeting
Supply Chain Management enablers

Physical Network and facilities (material planning, procurement,
processing, warehousing, distribution and order fulfillment services)
Inventory management (planning, forecasting and replenishment)

Transportation and logistics (mode, route and network selection,
providing in-transit services, tracking services)
Information technology (use of ERP, EDI, RFID)

Sourcing and strategic alliances
Pricing and revenue management
Organization structure and human resource management (skill
set mapping, directing, delegating, flexibility, innovation cycles, processcentered management)
Benefits of Supply Chain Management

Ensures work-in-process of material flow and finished goods
Optimization of work force at different levels and different processes
Reduction in working capital deployment
Ensures accurate inventory planning and forecasting
Ensures simplification of order tracking and fulfilment status
SCM reduces cycle time, resulting in faster turnover of inventory and capital
resources.
It results in reduction in wastage and faster replenishments
This results in better profitability and ROI
SCM results in better customer reach, higher product availability, better
responsiveness to customers.
It ensures improved satisfaction for both internal and external customers
Supply Chain Process Cycles

Material Supplier
Procurement
cycle
Manufacturer
Warehouse
Distributor
Manufacturing
cycle
Replenishment
cycle
Retail
Consumer
Order generating
cycle
Suvrashis Sarkar / Sept 2014
ORDER Management
Need for Order Management process:
Demand visibility across channels, divisions, partners
Enables multi-channel order capture
Enables multi-source and multi-division order execution and fulfillment
Enables monitoring of order execution
Enables order modification at various stages of fulfillment
Enables customization and customer satisfaction
ORDER Management
Components of Order Management process:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Order preparation = manual / electronic

Order entry = order completeness , accuracy, back-order/cancellation check
Credit history of customer
Checking of product availability = existing / made-to-order / promotional
Order approval and confirmation from customer
Order transmission = manual / electronic
Order processing for enabling delivery
Order filling = assembling & dispatching
Tracking order fulfillment
Communicating with customer about order fulfillment status
ORDER Management
Measures of order fulfilment:
Line fill rate: Line fill rate = Total no: of units received
Total no: of units ordered
Order fill rate: Order fill rate = Total no: of SKU categories received
Total no: of SKU categories ordered
ORDER Management
Benefits of good Order Management process:
Reduces inventory
Better collaboration with suppliers
Reduces operational cost
Reduces cost of purchase and order management
Compresses order pipeline
Improves customer service
ORDER Management
Customer orientation objectives in Order Management process:
Increase customer and channel satisfaction
Execute flawless fill and delivery of each customer order
Build seamless customer experience across multiple channels
Provide global visibility to order status

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Distribution and Supply Chain

Supply Chain Management =Integration of all activities involving:

Suvrashis Sarkar / Aug 2014

Service Travel, Online trade, finance

Suvrashis Sarkar / Aug 2014

Suvrashis Sarkar / Aug 2014

Channels of Distribution (eg: FMCG)

Suvrashis Sarkar / Aug 2014

Suvrashis Sarkar / Aug 2014

Channels of Distribution (eg: Consumer durables)

Suvrashis Sarkar / Aug 2014

Suvrashis Sarkar / Aug 2014

Supply chain and Logistics management

Equipment / machinery supplier

Capacity planning &

e-tailing and ThirdThird-party Logistics

What is Supply Chain all about ?

Suvrashis Sarkar / Aug 2014

Supply Chain Management enablers

Inventory management (planning, forecasting and replenishment)

Information technology (use of ERP, EDI, RFID)

Suvrashis Sarkar / Aug 2014

Benefits of Supply Chain Management

Suvrashis Sarkar / Aug 2014

Supply Chain Process Cycles

Suvrashis Sarkar / Sept 2014

Suvrashis Sarkar / Sept 2014

Order preparation = manual / electronic

Suvrashis Sarkar / Sept 2014

Suvrashis Sarkar / Sept 2014

Suvrashis Sarkar / Sept 2014

Suvrashis Sarkar / Sept 2014

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