Supply Chain Network Design (class)

Supply Chain Network Design (class) - Logistics Management...

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Unformatted text preview: Logistics Management Supply Chain Networks: Design and Analysis By Dr. Mark Barratt Logistics Management Part I: Supply Chain Network Design Logistics Management SC Network Design: Some Background The key issues are: Cost and Service .- Leads to decision as to where to locate facilities (plants and DCs) and stores. Outcomes: increased efficiency and effectiveness of Logistics and SC operations + possible differentiator in marketplace, e.g. Wal-Mart. Get it wrong : a critical competitive disadvantage, e.g. Albertsons. Get it right : Significantly reduced logistics costs and improved customer service levels. But remember that decisions and actions taken are not always logical, but may be based on business reasons rather than the result of logical analysis. Logistics Management Strategic Nature of SC Network Analysis Location of SC Network and its facilities are a given and any changes must be made over the long term. Short-term changes are impractical due to site availability, leases, contracts and investments, although it does happen.- E.G. Dollar Tree expanded the size of its National Distribution Center, even though the analysis supported the construction of a second DC in another location. The business environment is constantly changing so it is unlikely that a SCN is up to date so every 2-3 years requires an evaluation. What are the drivers of the need to re-evaluate the SCN? Logistics Management Key Drivers of SC Network Change Changing Customer Service Requirements : often with the help of suppliers and 3rd parties. Changing Types of customers.- Food manufacturers serving independent stores and regional retail chains, moving to serving mass merchants, for example Wal-Mart, etc., which leads to different service requirements such as lead times, order size, frequency [shipping notification, marking, tagging and packaging]....
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This note was uploaded on 03/06/2011 for the course SCM 345 taught by Professor Maltz during the Spring '08 term at ASU.

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Supply Chain Network Design (class) - Logistics Management...

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