Online retailing has changed. Before, e-commerce companies fulfilled consumer demand from a small number of large-scale warehouses that carried similar catalog of items. Inventory for low-volume products were maintained in a few locations as possible while maintaining service levels that met customer expectations.
Today, consumers are demanding more than just low prices. Consumers are also demanding that products ordered be delivered quickly. Demand for quick day delivery are now pushing retailers to experiment with new business and operations models. Notably, known retailers such as Amazon.com, Nordstrom, and Macy’s are redesigning their distribution networks. Retailers have recognized that the terms of competition have changed.
There is now an increasing need to invest on real-time sales and inventory information, coupled with advanced analytics to accommodate fluctuations and changes in the business environment quickly. This is what we call putting Agility in Supply Chain Network Design or Distribution Agility.
This presentation provides a comprehensive understanding of distribution agility and the 3-phase process of effective putting agility in supply chain network design.
1. Reinvent Network Design Thinking
2. Centralize Inventory and Logistics Data
3. Build Inventory and Pricing into Fulfillment Decisions
Adapting Agility in Supply Chain Network Design will lessen organizations need for major adjustments even when inventory costs factors fluctuate.
This deck also includes slide templates for you to use in your own business presentations.
This PPT delves into the evolving landscape of online retail, emphasizing the critical need for agility in supply chain network design. It outlines how traditional models are becoming obsolete and highlights the importance of real-time data and advanced analytics. The presentation is structured to guide you through a 3-phase process, from reinventing network design thinking to centralizing inventory and logistics data, and finally, integrating inventory and pricing into fulfillment decisions. This comprehensive approach ensures your organization can swiftly adapt to market changes, maintain competitive advantage, and meet customer expectations for speed and efficiency.
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Source: Best Practices in Supply Chain Management PowerPoint Slides: Agility in Supply Chain Network Design PowerPoint (PPTX) Presentation Slide Deck, LearnPPT Consulting
This PPT slide outlines the initial phase of a strategic approach to network design thinking, emphasizing its significance in optimizing cost and performance related to customer service. The primary focus is on reinventing the distribution and information networks that underpin supply chain operations. It highlights the necessity of redesigning these networks to enhance responsiveness and agility.
The "Impact" section succinctly states that this phase facilitates an immediate response to both agile and traditional systems, indicating a dual approach to operational efficiency. This suggests that organizations can adapt quickly to changing market conditions while maintaining established processes.
In the "Description" area, the slide elaborates on the key components of this phase. It stresses the importance of having a real-time information system that tracks sales data by time and location. This capability is crucial for making informed decisions and optimizing inventory management. The emphasis on real-time data underscores the need for organizations to be proactive rather than reactive in their supply chain strategies.
The "Case Study" section provides a practical example, citing Amazon's expansion of its distribution network. The company opened numerous delivery stations and hubs to enhance its fulfillment capabilities. This real-world application illustrates the effectiveness of the proposed strategies and serves as a benchmark for other organizations aiming to improve their supply chain agility.
Overall, this slide serves as a foundational overview for executives considering the implementation of innovative network design thinking to drive operational improvements and better serve customers.
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