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Comparative Analysis of Distribution Networks

The document outlines various exercises related to supply chain fundamentals, including comparative tables for distribution networks and inventory restocking policies. It discusses the impact of Amazon's distribution center expansion on inventory and logistical costs, as well as the classification of supply contracts and supplier relationship strategies. Additionally, it includes analyses of Incoterms for international shipping and the Kraljic model for supply strategies.

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0% found this document useful (0 votes)
9 views7 pages

Comparative Analysis of Distribution Networks

The document outlines various exercises related to supply chain fundamentals, including comparative tables for distribution networks and inventory restocking policies. It discusses the impact of Amazon's distribution center expansion on inventory and logistical costs, as well as the classification of supply contracts and supplier relationship strategies. Additionally, it includes analyses of Incoterms for international shipping and the Kraljic model for supply strategies.

Translated by

ScribdTranslations
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Bryant Becerra Muñoz.

Nombre: Bryant becerra muñoz. Matrícula: 02967022


Nombre del curso: Professor's name:
Fundamentals of chain of Eduardo David Trujillo Rincón
supply
Module 1: Exercise 2:

Fecha: 07-julio-2022
Bibliography:

1. Create a comparative table with the most common types of distribution networks.
storage with the manufacturer with direct shipping, manufacturer storage
with consolidation in transit, storage at the distributor with delivery of
carrier, distributor storage with home delivery, storage
from the manufacturer or distributor with customer pickup), the criteria to compare will be:
a. Delivery time to the customer.
b. Inventory costs (required inventory quantity).
c. Recommended for what type of products (based on unit value and the
distributed volume).
d. Impact on the visibility of the order.
e. Impact on returnability.
Bryant Becerra Muñoz.

Types of network Time of Cost of Types of Impact on the


distribution. delivery of inventory. products. image of the
client. order.
Storage The elders This type of network It is It remains
or with the times of it has costs of recommend to the a strict
manufacturer of delivery to storage client for care in the
with shipping client or very low the products transport of
direct but the costs when older the products
of transport size.
they are too much
highs
Storage Allows you to It has the Products of Can generate
or from the manufacturer client to have the higher costs any kind or of change in your
with product of inventory imminent image
consolidation when it arrival
in transit require
Storage has the costs. He has the lowest All the Depending
or of the distributor higher price of types of of the routes of
with delivery of that the ones from transport but articles. trip.
carrier the highest storage in
or with the storage
manufacturer o
Storage The costs do not The costs are They are given Let it be
or of the distributor they are so tall elevated recommend to delivered in
with delivery to the clients excellent
address that they be conditions.
products that
require a
more route
directly to
client
Storage It can vary in It is smaller the It has more Depending
or from the manufacturer answer of cost of variety of in the
the distributor client and of transport and of product that conditions
with collection provider storage they offer you the that the customer
of the client o network of receive the
distribution product.
Bryant Becerra Muñoz.

2. Research the increase in the number of centers over the last 10 years.
distribution of the company Amazon that executes its logistics operations throughout the
world. Answer the following questions related to the consequences of
aumentar la cantidad de instalaciones que almacenan productos.

Increase, since nowadays Amazon is one of the largest sales and shipping companies.
merchandise to the whole world, it has caused their sales to increase, but
as a consequence, it has required the search for a greater expansion of the centers of
distribution, as products are increasingly in demand and they are the ones responsible
to store them and distribute them

a. Did the global inventory increase or decrease? Why?

Increase, due to the increase in demand for products and required a rise
of storage and sale of the same

b. Did the cost of storage increase or decrease? Why?

Reduced. Increase, due to the new shelves to handle space needs.


and additional volumes

c. Did the cost of sending products to home increase or decrease? Why?

Increase, due to the rise in demand for the products and required an increase
of storage and sale of the same

d. Did the total logistical cost increase or decrease? Why?

reduced

3. Create a comparative table with the different policies for restocking inventory.
(periodic review and continuous review), the criteria to be compared will be:
a. Frequency with which orders are placed.
b. How is the order quantity of the lot size to be ordered calculated?
c. What factors determine the level of safety inventory?

Method Frequency in the How is it calculated? What factors


that is placed the amount of determine the level
orders size order of inventory
From the batch when ordering? Security.

Periodic review Each order is The inventory is This system does not require
placed and reviewed reviewed in a way that the employee does
with each periodic interval (each a physical count after
fixed times week, every 10 days, each transaction of
each month, etc) and not of inventory; instead of
continuous form, that is why it does it when
that the emission of the time arrives of
orders are made to review according to the
Bryant Becerra Muñoz.

end of each period defined periodicity


or at its beginning.
The orders are being reviewed.
If the amount of One option is
Continuous review
with a frequency articles reaches a propose models of
even higher and constant specific level in the minimization of
than the previous one, for inventory cost, but it is a
thus obtain better we will place a complex task to the
specifications of the new order of involve the
demand or of time order and the determination of
of delivery we will name as cost of shortages and of
"Q". That level deferred orders
specific is what
we know as
reorder point or
reorder point.

4. Analyze the following cases of companies that will export their products to clients in
the foreigner and determines which Incoterms could be included in the
sales conditions for each case:
a. The exporting company can only send the products through
maritime transport.

FAS-Free Alongside Ship


b. The exporting company can only send the products through
land transportation and is willing to pay for the cost of transportation and
product insurance until the moment the shipment is released
through the customs of the destination country.
DDP - Delivered Duty Paid
DAP- Delivered at Place

c. The exporting company is only responsible for the product while it is


inside their facilities. At the moment it is extracted and loaded onto a vehicle
Outside of the plant, the responsibility for transportation costs and insurance falls.
on behalf of the importing client.

EXW - Ex Works

The exporting company is responsible for the transportation cost and insurance of the
product until it reaches the door of the importing customer's facilities.

EXW - Ex Works
FCA - Free Carrier
CPT - Carriage Paid To

The exporting company is responsible for the cost of transportation and insurance.
product until it is on board the vessel that will carry out the
international transport. At the moment the vessel sets sail towards the
Bryant Becerra Muñoz.

destination country, the responsibility for transportation costs and insurance is borne by
importer's customer account.

CIP - Carriage and Insurance Paid To

5. Create a comparative table that includes the activities of 'Supply'.


strategic” (Sourcing) and “Purchasing” (Purchasing), the criteria to compare will be:

Involved planning (strategic, tactical, and operational).


Activities that are part of the cycle (S2C cycle in sourcing and P2P cycle in)
purchasing).

Involved planning Activities that form


part of the cycle
Supply Strategic supply Implement the methodology
"Strategic" is a purchasing process strategic
that supply
connects the Strategic
(Sourcing) Data collection, the Sourcing) allows for an analysis
expense analysis, the exhaustive of all costs
market research externals and internals that
negotiation and contracting. they influence the value of the
Strategic supply final products, including
it can be customized for logistics, storage
satisfy the needs and the acquisitions. In a way
specific to a client, practice, with the Strategic
but its main objective is Sourcing, the organizations
take advantage of a unique system and what they buy can be left off
integrated to improve the focus solely on the
profitability transactional aspects of the
Purchase, incorporating greater
intelligence in the process
as a whole, including the
supplier selection.
"Purchases" Refers to the part of Save money
the cycle by organizing,
shopping that is dedicated consolidating and optimizing
Purchasing actively to Purchases. Increase the
buy a product or visibility with requests and
service of a provider purchase orders that
organize, identify and
carry out a follow-up of the
purchase requests.
Increase efficiency with
tools that include
purchase catalogs
guided, mobile requests and
approval routing
Automated.
Bryant Becerra Muñoz.

6. Research supply contracts. Suggested sources of information: Guide


for CSCA exam (the guide is located in: General Information > Introduction);
libro: Chopra, S., y Meindl, P. (2019).Administración de la cadena de suministro(6a.
U.S.: Pearson.
7. Create a comparative table in which you include the following contracts of
supply

a. Return or buy-back contracts.


b. Contracts to share or divide income.
c. Contracts for flexible quantities.
d. Contracts to coordinate costs in the supply chain.
e. Contracts to motivate sales agents or representatives.
f. Contracts to induce improvements in performance.

Types of supply contracts


Return or repurchase contracts
buyback
Contracts for sharing or distributing The conditions that explain the dissolution of
income society must also be included in the
profit-sharing agreement.
Flexible quantity contracts Its application allows determining the
purchase and sale quantities and the limits of
variability that reduces the risk of
losses and improve the overall utility of the
chain
Contracts to coordinate costs in the The difference in costs for the buyer and
supply chain the provider can lead to decisions that
total costs of the chain increase
supplies
Contracts to motivate agents or These are created with the aim of stimulating the
sales representatives seller to generate an increase in the
total sales of the product
Contracts to induce improvements in the
performance

8. Research the Kraljic model or matrix, which classifies supply strategies.


Based on the type of article that will be purchased, answer the following:
a. What is the supplier relationship strategy that should be followed?
When is an item considered critical or a 'bottleneck'?

It is recommended

b. What types of items can be acquired through auctions? Why?

All kinds of products

c. Why is it suggested to automate the purchasing processes of non-critical items?


Bryant Becerra Muñoz.

Because they are products that have little impact on purchasing in business activity,
it is required to automate processes and monitor volumes in order to
increase the numbers in those areas

d. What risk could exist if the purchase of critical items were to be automated?

Since they are high-demand products, these can generate good profits.
sales, but with that, high-risk purchases for the company can also be generated

e. What is the relationship strategy with the supplier that should be followed?
When is the item to be purchased considered 'strategic'?

A market analysis should be conducted on the products with the highest demand and that are
venden en mayor unidades, con el objetivo de sugerir y desarrollar las asociaciones
necessary with the suppliers

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