Crossdocking
Practice in logistics of unloading materials from an incoming semi-trailer truck or railroad car and loading these materials directly into outbound trucks, trailers, or rail cars, with little or no storage in between
When to use distribution centers?
- Frequent replenishment required
- Unpredictable merchandise sales – fluctuating demand
- Non-perishable merchandise
- Items shipped to store in less than full case quantities like drug stores
- Many retail outlets that are not concentrated in one area
Advantages of using a distribution center
- Effects of sales forecast error for individual stores are minimized
- Less merchandise in the individual store, thus a lower inventory investment system-wide
- Less out-of-stock
- More cost effective
When to use direct store delivery?
- Retailer has only a few outlets
- Many retail outlets are concentrated in metro areas
- Important to get merchandise in store quickly
- Fashion
- Merchandise perishable
Extranet
Public internet with access restricted to partners / collaborative network
Intranet
Internet with access restricted to people within a company
Data Warehousing
Is the coordinated and periodic copying of data from various sources, both inside and outside the enterprise, into an environment ready for analytical and information processing
- Create customer loyalty program
- Calculate the value of the customer
- Coordinate all aspects of the marketing campaign
- Learn how to group product categories to increase purchase
Radio Frequency Identification D
allows an object or a person to be identified at a distance using radio waves
Benefit of RFID
- Reduces warehouse and distribution labor costs
- Reduces point of sale labor costs
- Inventory savings by reducing inventory errors
- Reduces theft – products can be tracked
- Reduces out of stock conditions
What is and benefits of Quick Response?
-Inventory management systems designed to reduce the retailer’s lead time for receiving merchandise
- Reduces lead time
- Increases product availability and lowers inventory investment
- Reduces logistics expenses
Third-party logistics
Multi-channel retailers may outsource fulfillment of Internet orders to third party
Zappos uses UPS to deliver merchandise to customers.
Reverse Logistics
- A flow back of merchandise through the channel for customer returns.
Customer–store–Distribution Center–Vendor
Strategic importance of scm
Opportunity to reduce costs
Transportation costs
Inventory holding costs
Provide value to customers by making the right merchandise is in the right place at the right time
Fewer stockouts
Greater assortment with less inventory
How to improve ROI through an efficient chain and information system
Net sales increase or decrease
Increase
How to improve ROI through an efficient chain and information system
Net profit margin is (increased or decreased) by (increasing or decreasing) gross margin
Increased and increasing
How to improve ROI through an efficient chain and information system
Operating expenses( increase or decrease) by coordinating deliveries
Decrease
How to improve ROI through an efficient chain and information system
handling (is maximized or minimized) by ( imposing or reducing) expenses
Minimized reducing
How to improve ROI through an efficient chain and information system
Backup stock (increases or decreases)
Decreases
How to improve ROI through an efficient chain and information system
Inventory level become (higher or lower)
Lower
How to improve ROI through an efficient chain and information system
Total assets are (higher or lower)
Lower
How to improve ROI through an efficient chain and information system
The assets turnover and inventory turnover are both (higher or lower)
Higher
Flow of information & merchandise
What are the technologies that would help each of the information flow (1) through (6)?
- Customers to stores
- Stores to buyer
- Buyer to distribution center
- Vendor to buyer
- Distribution center to stores
- Vendor to stores
