第十 三單元(1) ：Designing the Distribution Network in a Supply Chain
Designing the Distribution
Network in a Supply Chain
蔣明晃教授
【本著作除另有註明外，採取創用CC「姓名標示
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Outline
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The Role of Distribution in the Supply Chain
Factors Influencing Distribution Network Design
Design Options for a Distribution Network
The Value of Distributors in the Supply Chain
Distribution Networks in Practice
The Role of Distribution in the Supply Chain
► Distribution: the steps taken to move and store a
product from the supplier stage to the customer stage in
a supply chain
► Distribution directly affects cost and the customer
experience and therefore drives profitability
► Choice of distribution network can achieve supply chain
objectives from low cost to high responsiveness
► Examples: Wal-Mart, Dell, Proctor & Gamble, Grainger
Wikipedia
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Factors Influencing
Distribution Network Design
► Distribution network performance evaluated along two
dimensions at the highest level:
》 Customer needs that are met
》 Cost of meeting customer needs
► Distribution network design options must therefore be
compared according to their impact on customer service
and the cost to provide this level of service
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Factors Influencing
Distribution Network Design
► Elements of customer
service influenced by
network structure:
》 Response time
》 Product variety
》 Product availability
► Supply chain costs affected
by network structure:
》 Inventories
》 Transportation
》 Facilities and handling
》 Information
》 Customer experience
PZB為
Parasuraman, Zeithaml和Berry
》 Order
visibility
（簡稱PZB）三位學者於1985年所提出
》 Returnability
的服務品質衡量模式
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Service and Number of Facilities
Number of
Facilities
Response Time
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Factors Influencing
Distribution Network Design
► Elements of customer
service influenced by
network structure:
》 Response time
》 Product variety
》 Product availability
》 Customer experience
》 Order visibility
》 Returnability
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► Supply chain costs affected
by network structure:
》 Inventories
》 Transportation
》 Facilities and handling
》 Information
Service and Number of Facilities
Number of
Facilities
Response Time
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Inventory Costs and Number
of Facilities
Inventory
Costs
Number of facilities
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Transportation Costs and
Number of Facilities
Transportation
Costs
Number of facilities
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Facility Costs and Number of Facilities
Facility
Costs
Number of facilities
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Total Costs Related to
Number of Facilities
Total Costs
Total Costs
Facilities
Inventory
Transportation
Number of Facilities
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Variation in Logistics Costs and Response Time
with Number of Facilities
Response Time
Total Logistics Costs
Number of Facilities
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Design Options for a
Distribution Network
► Manufacturer Storage with Direct Shipping
► Manufacturer Storage with Direct Shipping and In-Transit
Merge
► Distributor Storage with Carrier Delivery
► Distributor Storage with Last Mile Delivery
► Manufacturer or Distributor Storage with Consumer
Pickup
► Retail Storage with Consumer Pickup
► Selecting a Distribution Network Design
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Manufacturer Storage with Direct Shipping
Manufacturer
Retailer
Customers
Product Flow
Information Flow
Flickr.com Mooi
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Microsoft
Manufacturer Storage with Direct Shipping
Cost Factor
Performance
Inventory
Lower cost because of aggregation
Low demand high value; product customization
can be postponed
Transportation
Facilities and
handling
Information
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High cost due to long distance and
disaggregate shipping
Lower facility cost; handling cost may lower if
small shipment can be managed
Significance investment in infrastructure to
integrate the supplier and buyers
Manufacturer Storage with Direct Shipping
Service factor
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Performance
Response time
High response time, complicated receiving
Product variety
Easily provide high level variety
Product
availability
Easily provide high level product availability
Customer
experience
Good as home delivery but suffer as partial
shipment from different suppliers
Order visibility
More difficult but more important
Returnability
Expensive and difficult to implement
In-Transit Merge Network
Factories
In-Transit Merge by
Carrier
Retailer
Customers
Product Flow
Information Flow
Wikipedia
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Wikipedia
In-Transit Merge Network
Cost Factor
Performance
Inventory
Similar to drop-shipping
Transportation
Facilities and
handling
Information
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Lower than drop-shipping
Receiving cost lowers at customer; handling
cost are higher drop-shipping
Investment is higher than drop-shipping
In-Transit Merge Network
Service factor
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Performance
Response time
Similar to drop-shopping; may be higher
Product variety
Similar to drop-shopping
Product
availability
Customer
experience
Order visibility
Similar to drop-shopping
Returnability
Similar to drop-shopping
Better than drop-shopping because of single
delivery
Similar to drop-shopping
Distributor Storage with Carrier Delivery
Factories
Warehouse Storage by
Distributor/Retailer
Customers
Product Flow
Information Flow
21
VECTORLOGO
Wikipedia
Wikipedia
Distributor Storage with Carrier Delivery
Cost Factor
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Performance
Inventory
Higher than manufacturer storage. Difference is
not large for faster moving items
Transportation
Lower than manufacturer storage. Reduction is
higher for faster moving items
Facilities and
handling
Higher than manufacturer storage. Difference is
large for slow-moving items
Information
Simple infrastructure
Distributor Storage with Carrier Delivery
Service factor
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Performance
Response time
Faster than manufacturer storage
Product variety
Lower than manufacturer storage
Product
availability
Customer
experience
Order visibility
Higher cost to provide the same level of product
availability as manufacturer storage
Returnability
Easier than manufacturer storage
Better than manufacturer storage with dropshipping
Easier than manufacturer storage
Distributor Storage with Last Mile Delivery
Factories
Distributor/Retailer
Warehouse
Customers
Product Flow
Information Flow
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Distributor Storage with Last Mile Delivery
Cost Factor
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Performance
Inventory
Higher than distributor storage with carrier
delivery
Transportation
Very high cost given minimal scale economies.
Higher than any other distribution option.
Facilities and
handling
Higher than manufacturer storage or
distribution with carrier delivery, but lower than
a chain of retail stores.
Information
Similar to distributor storage with carrier
delivery
Distributor Storage with Last Mile Delivery
Service factor
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Performance
Response time
Very quick. Same day to next day delivery.
Product variety
Easily provide high level variety
Product
availability
Less than distributor storage with carrier delivery
but larger than retail stores.
Customer
experience
Order visibility
Very good, particularly for bulky items.
Returnability
Easier to implement than other options. Harder
and more expensive than a retail network.
Easier to implement than manufacturer storage or
distributor storage with carrier delivery
Manufacturer or Distributor Storage with
Customer Pickup
Factories
Retailer
Cross Dock DC
Pickup Sites
Customers
27
Customer Flow
Product Flow
Information Flow
Manufacturer or Distributor Storage with
Customer Pickup
Cost Factor
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Performance
Inventory
Can match other options depending on the
location of inventory
Transportation
Lower than the use of package carriers,
especially if using an existing delivery network
Facilities and
handling
Facility cost will be very higher if new facilities
need to be built. The increase in handling cost
at the pickup site is significant.
Information
Significance investment in infrastructure
required
Manufacturer or Distributor Storage with
Customer Pickup
Service factor
Response time
Similar to carrier delivery with manufacturer or
distributor storage. Same day delivery possible
for items stored locally at pickup site
Product variety
Similar to other manufacturer or distributor
storage options
Similar to other manufacturer or distributor
storage options
Product
availability
Customer
experience
Order visibility
Returnability
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Performance
Lower than other options. In high density area
loss of convenience may be small
Difficult but essential
Somewhat easier given that pickup location can
handle returns
Retail Storage at Consumer
Pickup Sites
Cost Factor
30
Performance
Inventory
Higher than all other options
Transportation
Lower than all other options
Facilities and
handling
Higher than all other options The increase in
handling cost at the pickup site is significant for
online and phone orders.
Information
Some investment in infrastructure required for
online and phone orders.
Retail Storage at Consumer
Pickup Sites
Service factor
Response time
Product variety
Product
availability
Customer
experience
Order visibility
Returnability
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Performance
Same day pickup possible for items stored locally
at pickup site
Lower than all other options
More expensive to provide than all other options.
Related to whether shopping is viewed as a
positive or negative experience by customer.
Trivial in-store orders. Difficult, but essential, for
online and phone orders.
Easier than other options given that pickup
location can handle returns
Comparative Performance of Delivery
Network Designs
Retail Storage
with Customer
Pickup
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Manufacturer
Manufacturer
Storage with
Storage with InDirect Shipping Transit Merge
Distributor Storage
Distributor
with Package Carrier storage with last
Delivery
mile delivery
Manufacturer
storage with
pickup
Response Time
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Product Variety
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Product Availability
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Customer
Experience
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Order Visibility
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3
2
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Returnability
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5
5
4
3
2
Inventory
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1
1
2
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Transportation
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4
3
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5
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Facility & Handling
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Information
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2
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Linking Product Characteristics and Customer
Preferences to Network Design
Retail Storage
with Customer
Pickup
High demand product
Medium demand product
Low demand product
Very low demand
product
Many product sources
High product value
Quick desired response
High product variety
Low customer effort
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Manufacturer
Storage with
Direct
Shipping
Manufacturer
Storage with
In-Transit
Merge
Distributor
Storage with
Package Carrier
Delivery
Distributor
storage with last
mile delivery
Manufacturer
storage with
pickup
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The Value of Distributors in the Supply Chain
► Distributing Consumer Goods in India:
》 Lower transportation cost and improve replenishment response
time
► Distributing MRO Products:
Maintenance, Repair, and Operation
》 Order unplanned, a few items with lower value
》 Aggregate safety inventory and consolidate outbound shipment
► Distributing Electronic Components:
Microsoft。
》 Move components from manufacturers to small OEMs.
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The Value of Distributors in the Supply Chain
►
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Reduce inbound cost
Reduce outbound cost
Reduce safety stock and inventory costs
Stable order to manufacturers to allow effective
production planning
► Provide better response time
► Offer one-stop shopping with products from several
manufacturers
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Distribution Networks in Practice
► The ownership structure of the distribution network can
have as big as an impact as the type of distribution
network
► The choice of a distribution network has very long-term
consequences
► Consider whether an exclusive distribution strategy is
advantageous
► Product, price, commoditization, and criticality have an
impact on the type of distribution system preferred by
customers
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頁碼
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作品
授權條件
作者/來源
3, 18
Wikimedia Commons
本作品轉載自
http://commons.wikimedia.org/wiki/File:Dell_Logo.png，瀏
覽日期2011/12/28。
15
Flickr.com，作者：Mooi。
(http://www.flickr.com/photos/mooitw/4086539757/sizes/t/i
n/photostream/)，本作品採取創用CC「姓名標示－非商業性－相
同方式分享」2.0版授權釋出。
15
本作品轉載自Microsoft Office 2007多媒體藝廊，依據
Microsoft 服務合約及著作權法第46、52、65條合理使用。
18
本作品轉載自WIKIPEDIA
(http://en.wikipedia.org/wiki/File:Amazon.com-Logo.svg)，
瀏覽日期2011/11/29。
21
VECTORLOGO(http://www.allfreelogo.com/logo/hp-logo.html)
本作品轉載自VECTORLOGO網站，依據其版權聲明
(http://www.allfreelogo.com/privacy-policy/)與著作權法第
46、52、65條合理使用。
21
本作品轉載自WIKIPEDIA
(http://zh.wikipedia.org/wiki/File:IBM_logo.svg)，瀏覽日
期2012/3/8。
21
本作品轉載自WIKIPEDIA
(http://en.wikipedia.org/wiki/File:Toshiba_logo.svg)，瀏
覽日期2011/11/29。
版權聲明
頁碼
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作品
授權條件
作者/來源
本作品轉載自Microsoft Office 2007多媒體藝廊，依據
Microsoft 服務合約及著作權法第46、52、65條合理使用。