Chapter 11 - Supply Chain Strategy

Chapter 11 - Supply Chain Strategy - CHAPTER 11 SUPPLY...

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CHAPTER 11 SUPPLY CHAIN STRATEGY
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SUPPLY CHAIN STRATEGY Supply Chain Process Distribution Functions Distribution Strategy Channels of Distribution Vertical Marketing Systems Wholesalers
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SUPPLY CHAIN PROCESS COMPONENT PARTS MANUFACTURING/ASSEMBLY CHANNELS OF DISTRIBUTION CONSUMERS/USERS
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DISTRIBUTION FUNCTIONS Transaction Function - Bringing buyers and sellers together for the sale Physical Distribution Function - Bringing product from original seller to final buyer
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TRANSACTION FUNCTIONS Buying - Intermediary business and consumer buyers Selling - Manufactures, assemblers, and intermediary selling to business and consumer buyers
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PHYSICAL DISTRIBUTION FUNCTIONS Transportation – moving products Assorting/sorting – buying/breaking bulk Storage – storing products Inventory – physical count of products
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TRANSPORTATION SELECTION + (STRONG) – (WEAK) Mode Speed Cost Access Rail Trucking + Air + -
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ASSORTING AND SORTING Assorting Stage Buys in Bulk Sorting Stage Breaks Bulk Manufacturer Wholesaler Retailer
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STORAGE MANAGEMENT Warehouses Shipping containers Port of Houston
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STANDARD GLOBAL SHIPPING CONTAINERS Use less personal labor Accelerate global business Intermodal transfer between ships/rail/trucks Load/unload faster
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INVENTORY MANAGEMENT Just-in-time Safety stock Inventory theft
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NEED FOR INVENTORY Time lag from supplier to final buyer Uncertainty in supply and demand Economy of scale in cheaper unit cost of inventory
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Chapter 11 - Supply Chain Strategy - CHAPTER 11 SUPPLY...

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