{"id":454,"date":"2016-07-13T13:03:58","date_gmt":"2016-07-13T18:03:58","guid":{"rendered":"http:\/\/blogs.uww.edu\/prasad\/?page_id=454"},"modified":"2016-07-13T13:03:58","modified_gmt":"2016-07-13T18:03:58","slug":"optimizing-distribution-networks","status":"publish","type":"page","link":"https:\/\/blogs.uww.edu\/prasad\/teaching\/independent-study\/optimizing-distribution-networks\/","title":{"rendered":"Optimizing Distribution Networks"},"content":{"rendered":"<p>Gianni Montezemolo<\/p>\n<h2>Business Europe<\/h2>\n<p>May 21, 1997<\/p>\n<p>&nbsp;<\/p>\n<p>1)\u00a0\u00a0\u00a0\u00a0\u00a0 Efficient Consumer Response (ECR)<\/p>\n<ol>\n<li>a) Buzzword of the past<\/li>\n<li>b) Currently<\/li>\n<li>i) Competitive pressures drive to slash costs<\/li>\n<li>c) Future logistics<\/li>\n<li>i) Exploring alternative distribution channels<\/li>\n<\/ol>\n<p>(1)\u00a0\u00a0 Home delivery<\/p>\n<p>(2)\u00a0\u00a0 Internet<\/p>\n<p>(3)\u00a0\u00a0 Multimedia interactivity<\/p>\n<p>2)\u00a0\u00a0\u00a0\u00a0\u00a0 Leaders and Laggards<\/p>\n<ol>\n<li>a) Leaders<\/li>\n<li>i) Best-in-class have cut logistics costs 30-40%<\/li>\n<li>b) Laggards<\/li>\n<li>i) At a considerable cost disadvantage<\/li>\n<li>ii) Also at a service disadvantage<\/li>\n<\/ol>\n<p>3)\u00a0\u00a0\u00a0\u00a0\u00a0 A model distribution system<\/p>\n<ol>\n<li>a) Cost savings result from<\/li>\n<li>i) Faster inventory turnover yields most immediate positive results<\/li>\n<li>ii) Fewer order errors<\/li>\n<\/ol>\n<p>iii)\u00a0\u00a0\u00a0\u00a0 Faster payment of invoices<\/p>\n<ol>\n<li>iv) Utilizing fuller truckloads<\/li>\n<li>v) Fewer emergency shipments<\/li>\n<li>vi) Economies of scale<\/li>\n<li>b) Common mistakes<\/li>\n<li>i) Trying to tackle too many parts of the supply chain<\/li>\n<li>ii) Rationalizing one-part without devising and entire system plan<\/li>\n<\/ol>\n<p>iii)\u00a0\u00a0\u00a0\u00a0 Proceeding without full commitment of all affected parties<\/p>\n<ol>\n<li>iv) Simply investing in IT, not managing it<\/li>\n<\/ol>\n<p>4)\u00a0\u00a0\u00a0\u00a0\u00a0 When determining the scope of rationalization, companies must consider<\/p>\n<ol>\n<li>a) Customer preferences and needs do not follow geographical boundaries<\/li>\n<li>b) Clearly define the parameters of the project<\/li>\n<li>c) Determine location and number of distribution centers<\/li>\n<li>d) Don\u2019t underestimate the importance of IT<\/li>\n<li>e) Consider outsourcing logistics function<\/li>\n<\/ol>\n<p>5)\u00a0\u00a0\u00a0\u00a0\u00a0 Logistics in the future<\/p>\n<ol>\n<li>a) Distribution systems will<\/li>\n<li>i) Meet the demands of customers at minimal cost to the supplier<\/li>\n<li>ii) Anticipate the emerging and potential future changes in distribution channels and buying patterns<\/li>\n<\/ol>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gianni Montezemolo Business Europe May 21, 1997 &nbsp; 1)\u00a0\u00a0\u00a0\u00a0\u00a0 Efficient Consumer Response (ECR) a) Buzzword of the past b) Currently i) Competitive pressures drive to slash costs c) Future logistics i) Exploring alternative distribution channels (1)\u00a0\u00a0 Home delivery (2)\u00a0\u00a0 Internet (3)\u00a0\u00a0 Multimedia interactivity 2)\u00a0\u00a0\u00a0\u00a0\u00a0 Leaders and Laggards a) Leaders i) Best-in-class have cut logistics costs [&hellip;]<\/p>\n","protected":false},"author":3916,"featured_media":0,"parent":118,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-454","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/users\/3916"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/comments?post=454"}],"version-history":[{"count":1,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/454\/revisions"}],"predecessor-version":[{"id":455,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/454\/revisions\/455"}],"up":[{"embeddable":true,"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/pages\/118"}],"wp:attachment":[{"href":"https:\/\/blogs.uww.edu\/prasad\/wp-json\/wp\/v2\/media?parent=454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}