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Flows in a grocery supply chain

Upstream of the store, i.e., moving towards the manufacturer, there are numerous possible supply sources. The store can get its product from the chain store warehouse, which may have regular deliveries to the store. But the store can also get deliveries from wholesalers who support a particular manufacturer and deliver in bulk. The store can also receive deliveries from specialized distributors who may focus on a niche market, e.g., organics or special ethnic foods. Each of these sources in turn gets product from the plant warehouses or other sources. The plant in turn gets supplies from suppliers. [Pg.20]

The next step in a supply chain audit is to examine how capacity is deployed by understanding its product-based allocation, which is related to design choices across locations and product types and across locations. Thus, we will first consider how products can be separated based on their demand volumes and consequent impact on capacity requirements. The next step will be to consider if product design specifications can be standardized to improve supply chain performance. Finally, the impact of a consolidation warehouse on required capacity will be considered. [Pg.20]

focus on products handled by the supply chain and verify if the supply process matches product characteristics. If all SKUs are sorted in order of decreasing sales (i.e., from the highest to lowest sales levels) and the cumulative sales are plotted vs. the corresponding ranking of products, the data usually generates a Pareto distribution. Products can thus be divided into three categories A products that represent 20% of the products but 80% of the sales volume, B products that represent 30% of the products and 15% of the sales volume, C products that represent 50% of the products and 5% of the sales volume. [Pg.21]

This example suggests that supply chain costs can be decreased by adjusting the supply process to match product characteristics. Thus, in this step of a supply chain audit, the question is Are the supply chain capacity and its deployment tailored to product characteristics If not, how can supply chain costs be reduced by such adjustments  [Pg.21]

In many supply chains, products with similar form and function may end up having different specifications (e.g., consider the number of different power cords for cell phones). Such SKU proliferation can generate [Pg.21]


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Flows in Supply Chains

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