Distribution management
Summary: Supply Chain Logistics Management , Bowersox
Inhoud
Chapter 1: 21st –century Supply chains .................................................................................................... 1
Chapter 2: Logistics .................................................................................................................................. 5
Chapter 3: Customer Relationship Management .................................................................................... 7
Chapter 8: Transportation ...................................................................................................................... 11
Chapter 12: Network Design .................................................................................................................. 14
Chapter 1: 21st –century Supply chains
The typical order-to-delivery process involved: order creation + transfer, electronic data interchange
(EDI), order processing, credit authorization, order assignment for processing, and shipment to
customer. In the 1990s the average time to go through this process ranged from 15 to 30 days and was
full with unpredictable events, which was covered by accumulated inventory (at all links in the supply
chain). Today’s transportation is supported by sophisticated information systems that facilitate
predictable and precise delivery, due to innovations like tracking of shipments and other real time
data. In a digital age the connectivity among collaborating businesses continues to drive new order of
relationships: Supply Chain Management. Perfect orders are becoming the expectation of customers
and the goal of organizations.
The supply chain revolution
Supply chain management consists of multiple firms collaborating to leverage strategic positioning and
to improve operating efficiency.
Logistics is the process that creates value by timing and positioning inventory over geographical
locations.
Supply chains were developed by companies who realised that they weren’t self-sufficient and had to
perform (jointly) activities to reach a certain end product/service. For continuously success it was
necessary to work closely with vertical organizations, like suppliers and distribution centres.
Definitions like distribution channels and marketing channels were developed. Organizations began to
form collaborative strategies and innovations. However there was never a developed information
system, so when push came to shove, all organizations in the chain first made sure they can complete
their own goals, without checking impact on other companies upwards or downwards the chain. These
later implemented advanced information systems made further integration and collaboration possible.
Why integrations creates value
With value creation, the main subject is the consumer/end-user, who has three perspectives:
1. Economic value: the lowest cost price due to optimal efficiency of product/service creation: “high
quality at a low price”procurement/manufacturing strategy
2. Market value: realizing effectiveness by presenting an attractive assortment of products at the
right time and place. market/distribution strategy
3. Relevancy value: making real difference to customers by offering customization of value adding
services over and above basic product characteristics and physical location. Aspects like this can
be turn-key performance or adding fashionable apparel. supply chain strategy
Summary: Supply Chain Logistics Management , Bowersox
Inhoud
Chapter 1: 21st –century Supply chains .................................................................................................... 1
Chapter 2: Logistics .................................................................................................................................. 5
Chapter 3: Customer Relationship Management .................................................................................... 7
Chapter 8: Transportation ...................................................................................................................... 11
Chapter 12: Network Design .................................................................................................................. 14
Chapter 1: 21st –century Supply chains
The typical order-to-delivery process involved: order creation + transfer, electronic data interchange
(EDI), order processing, credit authorization, order assignment for processing, and shipment to
customer. In the 1990s the average time to go through this process ranged from 15 to 30 days and was
full with unpredictable events, which was covered by accumulated inventory (at all links in the supply
chain). Today’s transportation is supported by sophisticated information systems that facilitate
predictable and precise delivery, due to innovations like tracking of shipments and other real time
data. In a digital age the connectivity among collaborating businesses continues to drive new order of
relationships: Supply Chain Management. Perfect orders are becoming the expectation of customers
and the goal of organizations.
The supply chain revolution
Supply chain management consists of multiple firms collaborating to leverage strategic positioning and
to improve operating efficiency.
Logistics is the process that creates value by timing and positioning inventory over geographical
locations.
Supply chains were developed by companies who realised that they weren’t self-sufficient and had to
perform (jointly) activities to reach a certain end product/service. For continuously success it was
necessary to work closely with vertical organizations, like suppliers and distribution centres.
Definitions like distribution channels and marketing channels were developed. Organizations began to
form collaborative strategies and innovations. However there was never a developed information
system, so when push came to shove, all organizations in the chain first made sure they can complete
their own goals, without checking impact on other companies upwards or downwards the chain. These
later implemented advanced information systems made further integration and collaboration possible.
Why integrations creates value
With value creation, the main subject is the consumer/end-user, who has three perspectives:
1. Economic value: the lowest cost price due to optimal efficiency of product/service creation: “high
quality at a low price”procurement/manufacturing strategy
2. Market value: realizing effectiveness by presenting an attractive assortment of products at the
right time and place. market/distribution strategy
3. Relevancy value: making real difference to customers by offering customization of value adding
services over and above basic product characteristics and physical location. Aspects like this can
be turn-key performance or adding fashionable apparel. supply chain strategy
