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Transportation and Distribution Difference, Key Trends/Challenges in…
Transportation and Distribution Difference
Transportation Modes
Rail
heavy, slow, long distance, commodity
Road
FTL, LTL, PTL
milk runs
Air
Ship
Pipeline
multimodal
Transportation Policy
Nature of Business
Availability
Demand Patterns
Green Transportation
Dsitribution
Rapid Response
Product Choice
Service
Costs
Transportation Cost
Facility Cost
Inventory cost
Rapid Response
Cost revenue and profit
Warehouses
3PL / 4 PL
Aggregators
Key Trends/Challenges in OM/SCM
Demanding customer
TQM
Globalization
Sustainability
Emergence of SCM
Outsourcing
IT
Process Control
OM in Product/Services
Tangible
Cannot be stored
Unique
High customer interaction
Inconsistent definition
No reselling
Dispersed
Often Knowledge Based
Plant Location
Cost of production
Easy Availability of Factors of production
Conducive society
Laws
Waste disposal
Impact of environment
Future Expansion
Sourcing and its Challenges
Few Suppliers
Many Suppliers
Vertical Integration
Keiretsu
Virtual SCM
JV
Operations KPIs
Customer Satisfaction
NPS
Quality
Reliability
OTIF
Perfect Order Fulfillment
Cost
CTS
Agility
Lead Time
Working Capital
Flexibility
Forecasting
Steps
Whats use ? - Hire people
Which parameter ? Visitoers in Disney
Time horizon ? When
Model ?
Collect data
Predict
Validate
KPIs
Accuracy
Bias
Fidelity
Value Add
Time Horizon
Short
Medium
Long
Importance
HR
Capacity
SCM
Approaches
Qualitative
Quantitative
OM interaction with Other Functions
Finance
COGS
Margin
Marketing
New Product
Promotions
MRP Grammage Artwork
Sales
Distribution
Experience
Demand Plan
Service Levels
HR
Strategy
Differentiation
Innovative design
Broad product line
Experience
After sales support
Low Cost
Low overhead
MAxmimum capacity
Inventory managment
Response
Reliability
FedEx
Flexibility
HP
Quickness
Dominos
S&OP
Benefits
Increased customer service level
reduced lead time / increase responsiveness
lower inventory
lower obsolescence
higher profitability
predictability for shareholders
Topdown management control
Roles
Demand Planner
Sales Personnel
Sales and Marketing Leader
CEO
Operations Manager
Supply Chain manager
Steps
Gather data
Demand planning
Supply planning
Plan reconciliation
Final S&OP
Layout
Product
Adv
Continous flow
low WIP
Low Cycle time
faster inspection
Optimum use of floor space
low cost per unit
Disad
High initial Capital
Breakdown in pipeline
Less flexible
high overhead
Process
Adv
low capital req
machine util high
Flexible
Break down not affect
Disadv
inspection diff
materail handling cost
low thruput
high WIP
more skilled labor
TOC
Steps
Identify
Exploit
Subordinate
Elevate
Repeat
Pillars
Simplicity
Good people
Conflict removed
I do not know
Supply Planning
Strategy
Level
Chase
Capacity
Hybrid