DISTRI LSCM 7

8/7/2019 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

DISTRI LSCM 7

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