Responsiveness v/s Efficiency

Responsiveness : It includes supply chain ability to do the following

a) Meets short Lead time
b) Respond to wide ranges of quantities demanded
c) Handles high uncertainty
d) Meets high service level
Efficiency : It is the cost of making and delivering product to
the customer

High

Responsiveness

Low
High Low
Cost
 Drivers of B2B Performance

B2B Supply Chain Strategy

Efficiency Responsiveness

Structure

Facilities Inventory Transportation Information

Location Cycle Inventory Mode of Transport Pull versus Push
Capacity Safety Inventory Route and Network Information Sharing
Warehousing Seasonal Inventory In house or Outsource Technologies to be used
Methodology Sourcing Forecasting and Planning
a) Cross Docking Pricing and Revenue Mgt.
b) Flow through
c) Put away
 Obstacles of Performance

Increasing variety of Products

Decrease in Product Lifecycles
Increasing Demanding Customers
Fragmentation of Supply Chain ownership
Globalization , Global Sourcing
 Designing
A B2B
Distribution Network
Factors influencing Distribution Network Design

Two Dimensions of performance is based on

1. Customer needs that are met

2. Cost of meeting customer needs

Customer Service (main components)

1. Response Time
2. Product variety
3. Product availability
4. Customer experience
5. Order visibility
6. Returnability
Manufacturer Storage with Direct Shipping
(Drop Shipping)

Manufacturer

Retailer

Customer

Product Flow

Information Flow
 Manufacturer Storage with Direct Shipping
(Drop Shipping)
Manufacturer

Retailer

Customer

Inventory
1
Transportation 4
Facilities & Handling 1
Information 4

Response Time 4
Product variety 1
Product availability
1
Customer experience 4
Order visibility 5
 In Transit Merge Network

Factory

Retailer In Transit Merge by Carrier

Customer

Product Flow

Information Flow
 In Transit Merge Network

Factory

Retailer In Transit Merge

by Carrier

Customer

Inventory
1
Transportation 3
Facilities & Handling 2
Information 4

Response Time 4
Product variety 1
Product availability
1
Customer experience 3
Order visibility 4
 Manufacturer Warehouse Storage with
Customer pickup

Factories

Retailer Cross Dock DC

Pick up Sites

Customer

Customer Flow

Product Flow

Information Flow
 Manufacturer Warehouse Storage with
Customer pickup

Factories

Retailer Cross Dock DC

Pick up Sites
Customer
Inventory
1
Transportation 1
Facilities & Handling 5
Information 5

Response Time 4
Product variety 1
Product availability
1
Customer experience 5
Order visibility 5
Retail Storage with Customers pickup

Vendors

Retailers DC

Retail Stores

Customer

Customer Flow

Product Flow

Information Flow
 Retail Storage with Customers pickup
Vendors

Retailers DC

Retail Stores

Customer
Inventory
4
Transportation 1
Facilities & Handling 5
Information 1

Response Time 1
Product variety 4
Product availability
4
Customer experience 5
Order visibility 1