Transportation and Distribution Difference

Transportation Modes

Rail

Road

Air

Ship

FTL, LTL, PTL

heavy, slow, long distance, commodity

Pipeline

Transportation Policy

Nature of Business

Availability

Demand Patterns

Green Transportation

milk runs

Dsitribution

Rapid Response

Product Choice

Service

Costs

Transportation Cost

Facility Cost

Inventory cost

Rapid Response

Cost revenue and profit

Warehouses

3PL / 4 PL

Aggregators

multimodal

Sourcing and its Challenges

Few Suppliers

Many Suppliers

Vertical Integration

Keiretsu

Virtual SCM

JV

Strategy

Low Cost

Response

Differentiation

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

Operations KPIs

Cost

CTS

Working Capital

Flexibility

Agility

Customer Satisfaction

NPS

Quality

Lead Time

Reliability

OTIF

Perfect Order Fulfillment

OM interaction with Other Functions

Finance

Marketing

Sales

HR

COGS

Margin

New Product

Promotions

Distribution

Experience

Demand Plan

MRP Grammage Artwork

Service Levels

Reliability

Innovative design

Broad product line

Experience

After sales support

Low overhead

MAxmimum capacity

Inventory managment

Flexibility

Quickness

Dominos

FedEx

HP

Plant Location

Cost of production

Easy Availability of Factors of production

Conducive society

Laws

Waste disposal

Impact of environment

Future Expansion

Layout

Product

Process

Adv

Disad

Adv

Disadv

Continous flow

low WIP

Low Cycle time

faster inspection

Optimum use of floor space

low cost per unit

High initial Capital

Breakdown in pipeline

Less flexible

high overhead

low capital req

machine util high

Flexible

Break down not affect

inspection diff

materail handling cost

low thruput

high WIP

more skilled labor

Forecasting

KPIs

Accuracy

Bias

Fidelity

Value Add

Steps

Time Horizon

Approaches

Qualitative

Quantitative

Importance

HR

Capacity

SCM

Short

Medium

Long

Whats use ? - Hire people

Which parameter ? Visitoers in Disney

Time horizon ? When

Model ?

Collect data

Predict

Validate

S&OP

Benefits

Increased customer service level

reduced lead time / increase responsiveness

lower inventory

lower obsolescence

higher profitability

predictability for shareholders

Topdown management control

Steps

Gather data

Demand planning

Supply planning

Plan reconciliation

Final S&OP

Roles

Demand Planner

Sales Personnel

Sales and Marketing Leader

CEO

Operations Manager

Supply Chain manager

Supply Planning

Strategy

Level

Chase

Capacity

Hybrid

TOC

Steps

Identify

Exploit

Subordinate

Elevate

Repeat

Pillars

Simplicity

Good people

Conflict removed

I do not know