Supply Chain Management - Designing Distribution Networks

Flashcards detailing key concepts and terms related to distribution network design and omni-channel retailing in Supply Chain Management.

Distribution Network

The steps taken to move and store a product from the supplier stage to the customer stage in a supply chain.

Profitability

The ability of a distribution network to drive profitability by affecting supply chain costs and customer value.

Response Time

The amount of time it takes for a customer to receive an order.

Product Variety

The number of different products or configurations offered by the distribution network.

Product Availability

The probability of fulfilling a customer order from inventory.

Customer Experience

The ease with which customers can place and receive orders, including the degree of customization.

Time to Market

The time it takes to bring a new product to market.

Order Visibility

The ability of customers to track their orders from placement to delivery.

Returnability

The ease with which a customer can return unsatisfactory merchandise and the ability of the network to handle returns.

Logistics Cost

The total cost associated with warehouse operations, transportation, and inventory management.

Manufacturer Storage with Direct Shipping

A distribution option where products are shipped directly from manufacturers to customers without intermediary storage.

In-Transit Merge

A network design where products are merged in transit before reaching the final customer.

Distributor Storage with Carrier Delivery

A distribution strategy where products are stored in distributor warehouses and delivered to customers via carriers.

Last-Mile Delivery

The final step of the delivery process where products reach the end customer from a distribution hub.

Omni-Channel Retailing

The use of multiple channels to interact with customers and fulfill their orders.

Returnability in Distribution Networks

The ability of a distribution network to efficiently manage returns and exchanges of products.

Response Time and Number of Facilities

The relationship indicating that shorter response times often require a greater number of distribution facilities.

Inventory Costs

The costs associated with holding inventory, which can vary based on the number of distribution facilities.

Performance Characteristics

The defining attributes of a distribution design that impact cost and service levels.

Customer Pickup

A distribution method where customers pick up products directly from designated locations.

Channel Performance

An assessment of various distribution channels based on metrics such as speed, availability, and costs.