L – 3 Network

Channel Design & Management

• Do your channel partners proactively search out your prospective customers and have the skills needed to close the business?

• Do your channel partners have the reach you need to fully participate in your chosen markets?

• Does your solution form a strategic part of your partners business? • How quickly can you recruit effective new partners? • How do you minimize channel conflicts without reducing market

coverage? • What performance data will you need to collect from the channel

and how? • How will you use your performance data to enhance the

effectiveness of your channel partners and create a better service for your customers?

• Which partner programs will work for you and which won’t

MARKETING / LOGISTICS MANAGEMENT CONCEPTS

CUSTOMER SATISFACTION

1. SUPPLIER2. INTERMEDIATE CUSTOMERS3. FINAL CUSTOMERS

INTEGRATED EFFORTS

1. PRODUCT2. PRICE3. PLACE – DISTRIBUTION4. PROMOTION

COMPANY PROFITS

1. MAXIMUM LONG TERM PROFITS2. LOWEST TOTAL COST GIVEN

ACCEPTABLE LEVEL OF CS.

COST TRADE OFF REQUIRED IN MARKETING AND LOGISITICS

PRODUCT PLACE

PRICE

PLACE/ CS

INV.CARRYINGCOST

INV.CARRYINGCOST

INV CARRYINGCOST

INV CARRYINGCOST

MARKETING

ORDER PROCESSING AND INFO COST

LOGISITCS

LOGISTIC MODELS

1.A ) TRADITIONAL MODEL

VENDOR MFG PLANT DEALER

LOGISTIC MODELS

1.B ) GENERIC SCM

VENDOR 1 MFG PLANT DISTRIBUTOR 1

VENDOR 2DISTRIBUTOR 2

DEALER 1

DEALER 2CUSTOMER 1

CUSTOMER 2

LOGISTIC MODELS

2 ) DELL MODEL

VENDOR 1 DELL

VENDOR 2

CUSTOMERWAREHOUSE

ORDERTO

VENDOR

ORDER

LOGISTIC MODELS

C ) HUB AND SPOKE MODEL

VENDOR 1 O 1

VENDOR 2

DCO 2

O3

LOGISTIC MODELS

4 ) J I T / SEQUENCE

VENDOR PRODUCTION FLOOR / ASSEMBLY

OUT BOUND

LOGISTIC MODELS

5 ) DEALER NETWORK MODEL

MANUF C & F AGENT WARE HOUSE

RETAILER

CONSUMER

• SCM is the network of organization that are involved through upstream and down stream linkage in the different processes and activities that produce value in the form of products and services in the hands of ultimate consumer

SUPPLY CHAIN MANAGEMENT

Logistics Management / SCM

Logistics Management SCM

Focus Optimal flow with in the organization Recognizes that internal integration by itself is not sufficient

Time Ensures an opportunity Creates an opportunity

Place Satisfy a market Creates a market

Quantity Reach Identify

Price Ensures cost efficiency Competitiveness

Quality Customer Service level Production level

Physical bonding Mental, emotional bonding

Free flow of product and information Capacity to allow free flow

Joins the echelons Creates the echelons

INTEGRATED SCM

INFLOW

TIER 2 TIER 1 MANUFACTURING CUSTOMER

INBOUND

PURCHASE LOGISTICS MKTG & SERVICE

PRODUCT FLOW

PRODUCTION R & D FINANCE

Customer relation mngt., Demand mngt, order fulfillment, manuf flow mngt,supplier relation mngt, product devl, return mngt

Integrated SCM Scheduling

Vendor Consolidation Compliance( Based on vendors production capacity

In bound logistics

KAN BAN SYSTEM ( REPLINSHIPMENT SYSTEM )

Shelf Stock Buffer Line Stock

AssemblyMaterial

Kan BanTrigger

NEW RULES……

• Capabilities and competencies that they are competent• Create superior value for the customer by managing the

core competency like product fulfillment, supplier development, order fulfillment, supplier development, customer management

• Inbound outbound logistics• Increase on service level rather than commodity• Competitive advantage = Product excellence x process

excellence• Responsiveness, Reliability and relationship

LEARNING

CASE STUDY