distri lscm 7
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DISTRIBUTION &DISTRIBUTION &
WAREWARE--HOUSEHOUSEMANAGEMENTMANAGEMENT
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Distribution design &Distribution design &
wareware--house functionhouse function
F1
F2
F3
F1,F2,F3
F1,F2,F3
Ware-house 1
Ware-house 2
Break-bulk eg: Fertilizers, oil & chemicals
Cross docking: Eg: Retails outlets
Mixing , Eg:
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WARE-HOUSING
FIT in the Supply Chain Management (SCM) Value addition carried out
Order filling
Packing
Labeling
Feature fitments (modular)
Placing of warranty cards, instr manual, discount brochures,company literature; in the package
Type, location of ware-house(s) Nature of items handled
Duration of storage & avg inv
Up and Down linkages
Road, air and sea connectivity
MHE and facilities required
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TYPES OF WARE-HOUSING
Range of items-wise, TVs in one and otherelectronic goods in another
Region/area-wise hub & spoke model
Co-location with factory Mother W/H
Leveraging tax benefits e.g. Baddi,Gauhati
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FACILITIES AT WARE-HOUSE
Safety and Security Fire and theft precautions
Computerized inv mgt, Visibility of inv
Fitment and assembly of final product Basic unit plus required modules, accessories as per
customers order
Inter-ware-house transfers, rush calls to Prod Mgr,OEMs
Tie-up with tpt/courier co hot and fail-proof
Control & Mgt of orders
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DISTRIBUTION REQUIREMENT
PLANNING (DRP)
Factors:Factors:
Demand patternDemand pattern
Safety stocksSafety stocks
Order qtyOrder qty
ReRe--order pointorder point
Av performance cycle periodAv performance cycle period
PrePre--requisites;requisites;Accurate sales forecastsAccurate sales forecasts wrtwrt loc & timeloc & time
Consistent performance cycleConsistent performance cycle
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DISTRIBUTION REQUIREMENT
PLANNING (DRP)
Benefits of DRPBenefits of DRP Improved customer serviceImproved customer service
Focus /prioritisation in marketing effortsFocus /prioritisation in marketing efforts
e.g. Hero Honda. Inv level of model CBZe.g. Hero Honda. Inv level of model CBZwas critically low and Cruiser inv was stockwas critically low and Cruiser inv was stock--piling.piling. A slew of schemes followed to enhance sales ofA slew of schemes followed to enhance sales ofCruiser.Cruiser.
Reduction in inv levelsReduction in inv levels
Optimisation of tpt loadsOptimisation of tpt loads
Reduction in tpt costsReduction in tpt costs
Works as a subWorks as a sub--system of ERPsystem of ERP
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Distribution Channel structures
M CM C
M R CM R C
M W R CM W R C M A/D W R CM A/D W R C
M = Manufacturer C = Consumer R = Retailer
W = Wholesaler A = C & F Agent D = Distributor
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SPEED AND ACCURACY INORDER FULFILLMENT
Order registration complete and givingspecific details of optionals/choices
Indication of expected delivery time tocustomer. E.g. for ex-stock issues, fiveworking days is a norm. Generally,delivery takes place on the third day.
At ware-house :
Track AWB/DC till received by customer
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An example
of Order fulfillment
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Godrej & Boyce CoOrder No.459 dtd10 Mar 2009, 1740 hrs
Customer : Mr. Ashish Mahajan (Dealer)B-12, Kapil Society
44, JN Apte Road
Pune- 411008
Mob 9898952727
Refrigerator- Freedom, 300 Ltr, Ash grey,
Qty- 04, with stabilizer S-4 Qty-4 andHandle protector Qty-04.
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Order Processing
0900h,10 Mar 09 : Stock availabilitychecked. Freedom 300 Ltr- qty 156 -
Stabiliser S 4 qty 02 -
Handle Protector qty 156
1000h,10 Mar 09 : 04 Freedom 300 ltr Fridges sent to Paintshop, with color requisition- Ash grey, Order placed for S-4stabilizers Qty 02, from M/s JP Electricals
1100h,10 Mar 09 : Handle protectors Qty 04 issued andH/O to Pkg & Dispatch.
1500h,11 Mar 09 : Painting completed, fridges sent to Pkg& Dispatch
1800h,11 Mar 09 : Stabilizer S-4 qty-02 recvd from JP Elec.
1000h, 12 Mar 09 : At Pkg & Dispatch Dept
Obtain from OEM M/S JP Electricals
To be painted as per customers choice
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Follow-up by Sales Dept
Received DC No 456 / 11 Mar 08, Overnite Tracked the consignment
1500 h, 13 Mar 08, Consignment deliveredto the customer
Called up customer 1000 h 14 Mar 08.Checked safe receipt, if any assistancerequired.
1000 h, 21 Mar 08. Called customer. bothfridges checked, working well. Customerhappy.
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Noida, Delhi
Ahmedabad
Pune
Kolkota
Chennai
HUB & SPOKE MODEL
N
Order No459
Mumbai
DCDC
DCDC
DC
DC
DC
DC
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AT WARE-HOUSE
Check order, break-down into FGs/items in inv, informrelevant storekeeper(s) to issue FGs/items
Forward order copy to Assembly and Packaging Dept
FGs/items issued & sent to Assy & Pkg.
Assembly completed, verified against the order
Documentation, warranty cert, quality cert, operatorsmanual placed in the pkg
Labeling, strip-binding, RFID, Add, tele of customerendorsed on pkg
Hand over to tpt/courier co Obtain AWB/DC No
Inform Sales dept & Customer
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At Pkg & Dispatch dept
1200 h, 12 Mar 09 : Final check on Correctnessof consignment done.
1400 h- placement of customers order copy,invoice copy, warranty cards, Operators
manuals, Cautionary stickers. 1430 h- Packed in cartons, transit safety labels
pasted, laminated Labels with Add, tele ofcustomer stapled on the carton
1600 h, 12 Mar 09 : Consignment h/o toOvernight courier. DC no. P 456 dt 11 Mar 09
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