From the one leaving the region transportation

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from the one leaving the region Transportation aggregation by storage intermediaries Stores inventory and aggregate inbound and outbound transportation Inbound: Able to aggregate shipments from several manufacturers onto the truck (several manufacturers going to Taiwan) -> lower transportation cost due to economic of scaleOutbound: aggregate packages for customers at a common destination. Most effective if the intermediary stocks products from many suppliers and serves many customers, each ordering in a small quantities Facility/warehouse aggregation Warehouse aggregation can help for companies that do not need such a big warehouse space or when if their needs fluctuate over time -> can exploit economic of scale by aggregating across different customers Procurement aggregation Third party adds surplus if it aggregates procurement for many small players and facilitates economic of scale in the ordering, production and inbound transportation. Most effective across many small buyers Large companies such as HP are large enough to expect little marginal benefit for procurement aggregation Information aggregation For example Qo10, different sellers put their product on the websites Help to aggregate information -> reduce investment by firms to have their own websiteand reduce the cost of search by consumers Best when both buyers and sellers are fragmented and buying is sporadic
Receivable aggregation Aggregate receivables risk to a higher level or lower collection cost Aggregate collection across all manufacturers, reducing collection cost -> lower default risk Increase the supply chain surplus if retail outlets are small and numerous and each outlet stocks products from many manufacturers that are served by the same distributor Relationship aggregation Decreasing the number of relationships required between multiple buyer and sellers Aggregate relationship -> increase the size of each transaction and decreasing their numberEffective when many buyers sporadically purchase small amounts at a time, but each order has products from multiple suppliers Lower cost and higher quality Lower cost or higher quality than the firmBenefit comes from specialization and learning, likely to be sustainable over time Factors influencing growth of surplus by a third party:Scale: If the own company has already achieve large economic of scale -> unlikely for firm to gain is use 3PL to leverage on their scaleUncertainty: If the needs for warehouse is very uncertain, 3PL can help to aggregate the inventory and increase surplus. Specificity of assets: If the product is only specific to a company, then 3PL cannot add surplus to the company. It cannot aggregate across all customers. If the product is less specific and use by multiple customers, 3PL able to aggregate the uncertainty and improve economic of scale.
Supplier scoring and assessment:-Process used to rate supplier performance: compare based on their impact on the supply chain surplus and total cost -

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