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Optimizing Distribution Network Design

The document discusses distribution network design, including factors that affect design, types of distribution centers, and benefits of efficient distribution networks. It covers topics like geographical coverage, regulations, technology, sustainability, costs, and how distribution benefits customer satisfaction, market growth, and supply chain resilience.

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rashidulhasan789
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12 views8 pages

Optimizing Distribution Network Design

The document discusses distribution network design, including factors that affect design, types of distribution centers, and benefits of efficient distribution networks. It covers topics like geographical coverage, regulations, technology, sustainability, costs, and how distribution benefits customer satisfaction, market growth, and supply chain resilience.

Uploaded by

rashidulhasan789
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Distribution Network Design

▪ Process of efficiently moving products or services from


manufacturers or suppliers to end consumers.

▪ It encompasses various activities such as warehousing,


transportation, inventory management, and order fulfilment.

▪ The goal of distribution is to ensure that products reach the


right place, at the right time, and in the right condition.
Distribution Management - YouTube
Importance of Distribution in SCM

Customer Cost Market Inventory Risk Competitive


Satisfaction Efficiency Reach Management Mitigation Advantage
Factors Affecting Distribution
Network Design
Geographical Technology &
Regulatory
Coverage & Information
Compliance
Reach Systems

Sustainability &
Customer Product
Environmental
Service Levels Characteristics
Impact

Supply Chain
Transportation
Resilience &
Costs & Modes
Risk Mitigation

Inventory
Facility Costs
Management
• Break-bulk DCs
Types of
• Transport optimizers (e.g., Cross-Dock)
Distribution
Centers • Fast response DCs (aggregate inventory,
quick delivery)
(DCs)
• Impact of product type, price, and
criticality on distribution system choice

DHL Parcel UK - YouTube


Long-Term Benefits of Distribution Network

Cost Efficiency & Customer Satisfaction Market Expansion Supply Chain


Profitability & Loyalty & Growth Resilience

Environmental Strategic Partnerships Adaptability to


Impact & Collaboration Market Changes
Value of Distributors in
Supply Chain

Storage &
Simplified Cost Savings &
Inventory
Logistics Efficiency
Management

Market &
Sales & Inventory
Consumer
Promotion Management
Insights

Expanded Technical
Product Expertise & Service Advisors
Offerings Support
Factors Influencing Distribution Network Design

Consumer Consumer Product Product


Demands Experience Variety Availability

Response Time to Order


Returnability
Time Market Visibility

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