Chapter 5 Retailing Logistics欧阳斌 张耀平 Knowledge Learning ObjectiveTo understand the role of retailing logisticsTo know the retailing logistics activitiesTo learn the retailing logistics management Skill Developing ObjectiveCommunication skills in introducing the retailing logisticsCommunication skills in retailing logistics techniqueWriting skills in introducing the retailing logisticsNew Words and Phrasespharmacy 5fB:mEsi n.药房, 药剂学, 配药业, 制药业, 一批备用药 品 fragility frE5dViliti n.脆弱, 虚弱previously spacious 5speiFEs adj.广大的, 大规模的 haulier 5hC:ljE, -liE n.拖曳者, 货运马车夫 anticipation 7Antisi5peiFEn n.预期, 预料 adequately adv.充分地 assessment E5sesmEnt n.(为征税对财产所作的)估价, 被估定的金 额Text 1 Retail Supply ChainsThe retail industry is large in size and diverse in type. It includes department stores, supermarkets, discount chains, fast food outlets, liquor stores, pharmacies, hardware, fashion, hairdressers, funeral services and related stores. A full range of nationally approved, training package courses from entry to managerial level is available in Retail, Community Pharmacy and Wholesale that focus on the development of both technical and general business skills as well as developing broader competencies in problem solving, communication and teamwork.Text 1 Retail Supply ChainsDirect Store Delivery (DSD) manages distribution from manufacturer to retailer in order to avoid storing in warehousesDistribution centerManufacturerRetailerCustomerDirect Store DeliveryText 1 Retail Supply ChainsHigh transportation costs High storing costs High demand variability Distant markets Fragility and merchandising difficulty Short shelf life of many grocery products Responsibility for unsold products Lack of information of customer preferencesText 1 Retail Supply ChainsGoods go directly from the manufacturer to the retailer Short delivery lead time “Route accounting” process is being used Information flow directly from retailer to manufacturer the manufacturer is first part logistic provider. Vendor Managed Inventory (VMI) is a variant of DSDText 1 Retail Supply ChainsTraditional approach:ManufacturerWare- houseRetailerManufacturers responsibility areaInformation flowPhysical flowText 1 Retail Supply Chains DSD approach:Manufacturer RetailerManufacturers responsibility areaInformation flowPhysical flowWarehouseText 1 Retail Supply ChainsLarge initial investments Geographical distance between the manufacturer and retailers should be rather short Tight manufacturer/retailer cooperation Tailor made DSD systems for every retailer Continuous performance control Efficient route planning systemText 1 Retail Supply ChainsLarge receiving capacity at the retailers if several deliveries arrive at the same time Valuable, spacious or sensible products or some other reason for having no inventory Use full truckload deliveries as far as possibleText 1 Retail Supply ChainsUnderstanding the power of DSD for specific categories to drive growth, profit and productivity is seen as a key for both manufacturers and retailers to win in the future. Orders are made directly by retailer to manufacturer The ideal would be to ship directly from the manufacturer to the retailer without going trough the warehouse of the manufacturer.A logistics structure with no retailer buffersTraditional distributionDirect Store DeliveryText 1 Retail Supply ChainsText 1 Retail Supply ChainsThe transports are made by the manufacturers transportation fleet (or hired hauliers) The drivers are responsible for anticipation of the orders and delivery of products The drivers use mobile solutions to communicate with the office/warehouseText 1 Retail Supply ChainsThe drivers can:verify the accuracy of the customers order. report OS while distribution centers (DCs) handle most products in receiving, picking, packaging and shipping.Ws perform a minimum of value-added activities (receive-store-ship generally in original forms), while DCs perform a great deal of value- added activities, e.g., final assembly.Ws collect data in batches (generally receive and ship goods in batches), while DCs collect data in real time.Text 1 What Is a Distribution Center?Ws store all products (slow or fast moving), while DCs hold predominantly high demand items. Ws focus on minimizing the operating costs to meet shipping requirements, while DCs focus on maximizing the profit impact of fulfilling customer delivery requirement.Text 1 What Is a Distribution Center?Operation Flow of Distribution Center There are seven steps of operation flow in the distribution center. Goods consolidation：It refers to receive goods from various plants and suppliers. Storage：It refers to keep the goods in the warehouses.Text 1 What Is a Distribution Center? Order Picking：It refers to pick up the destined goods according to the orders. Purchase：It refers to make orders with the suppliers. Order fill：It refers to fill the