Network design - Network Design Key Components (lecture)
4 important questions on Network design - Network Design Key Components (lecture)
Explain the difference between a centralized and decentralized network.
- Efficiency is high
- Lower overhead costs (facilities)
- Lower inbound transport costs
- Lower ordering costs
- Better inventory monitoring and transparency
- Efficient use of storage space and more profitable use of storage systems
- Suitable for auomatization
- High outbound transport costs
- Lower responsiveness
Decentralized:
- Faster supply - higher responsiveness
- Reduced transportation and material flow costs
- Short distances to customers
- Higher facility and inventory costs
What are drivers for redesigning a supply chain?
- Expansion
- Restructuring & simplification
- Downsizing
What are drivers for designing a new supply chain?
- New business field entry
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
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How do online sales affect distribution network design?
1. Customer service:
- Response time
- Product variety
- Product availability
- Customer experience
- Fast time to market
2. Costs:
- Transportation
- Inventory
- Facilities
- Information
Both:
- Order visibility
- Returnability
- Flexible pricing, product portfolio and promotions
- Efficient funds transfer
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