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Nayak
Logistics & SCM
Major elements
Order processing
Order department prepares multi copy invoices and dispatches them to various departments Order is checked with available stock. Items out of stock are backordered Items are shipped. They are accompanied by shipping and billing documents
Warehousing
Decide on a number of stocking locations depending upon cost and market to serve Choose the type of warehouses (private, public, automated, climate controlled, distribution center)
Cont.
Inventory
Level of stock Time of ordering Safety stock
Transportation
Speed Frequency Dependability Capability Availability cost
Distributor-manufacturer
Manufacturing cycle
Retailer distributor
Replenishment cycle
Customer retailer
Service expectation
Integrated supply or total solution
Design implication
Reseller assistance required to bundle the offer alongwith complementary products/services Reseller has to hire third party service provider to make final modification in the product or supplier owned assembly facilities Reseller has to maintain a stock and either have his own delivery service or tie up with somebody Reseller has to hire sales enginners and technical personnel Frequent deliveries reseller has to maintain stock or tie up with a delivery service provider Central warehouse, direct enquiries
Emergency delivery-logistics speculation strategy Technical support Lot sizes small- logistics speculation strategy Product standardization and low price-speculation strategy
Efficient vs Responsive
Functional Goods
Objective Cut costs of mfg, inv, transport & location
Innovative Goods
Respond quickly
Consequences of failure
Mfg Goods
Inventory
Minimize everywhere
Efficient Vs Responsive
Lead times Can be long because demand is predictable Low cost & reqd. quality Must be short
Suppliers
Product Design
Production
Inventory