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0.% #/*+3 3(.-. *! +/ -*P(3 3(.-. !"##$% '()*+ !3-)3.P% *+L.#.+L.+3 /O 3(. '/J#.3*3*4. !3-)3.P%
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3)*$ )*$/-* /-*+P +P !"##$ !"##$% % '()* '()*+! +! Product To $100K
Over $100K
To 500
O v e r 500
Intermediate
Simple < 1 week
Cut Cable
1 - 3 we week eks s
3 - 6 we week eks s
Low
High
Binnable
Cartons
Complex Extended
Pallets
Characteristics
*;;GBH *;;G BH FBH8F Q5HG68 *;;GBH *;;G BH G;:9 Q5HG68 "5M5AE:;B9:5; A8RG:A868;9 A8RG:A868;9F F #AE8A LGHL:H68;9 H8BE 9:68 -8F9:;B9:5; Q5HG68 )B;EH:;C IDBABI98A:F9:IF IDBABI98A:F9:IF
(1 of 384 buckets)
3)*$ )*$/-* /-*+P +P !"##$ !"##$% % '()* '()*+! +! 384 Buckets Cluster into Six Supply Chains Systems orders
Important, Important, unique attribute a ttributes s of supporting pipeline Co-ordinated Co-ordinate d staging, “marshalling” of orders orde rs for installers insta llers Dedicated installer support
Customer inventory replenishment
Cycle shipping Stock Sto cking ing points near nea r largest custome cu stomerr locations
Rapid response
Order-specifi Order-spec ific c shipping Low cycle cyc le time, time, order entry and material handli han dling ng
Nuts and bolts
Ordered Ordere d and stored sto red in bulk quantities (not (n ot individually pick picked) Freely available to installers and marshals in barrels and “suitcases”
Slow movers
Dedicated Dedicat ed produc productt management with with unique pricing guidelines Inventory held he ld by suppliers suppliers
Bulk cable
Independent transportation Dedicated material mate rial handling handling
!"##$% '()*+ !.PJ.+3)3*/+ 1. Unit value (Low margin? High full-stream cost?) 2. Sales volume (Unit sales per year?) Nature of relationship relationship (Long-standing? Transactional?) Capacity to draw in others
Product Pr oduct Strategy and Economi E conomics cs
3. Degree Degree of order co-ordi co-ordination nation (Independent line items? Complete systems?) Accura Acc uracy cy of delivery timing 15 minute window? Plus or minus 3 days?) On site service ( Dump? Installation?) 4. Merchandising ( Product Product dis display plays? s? Pr Promotions?) omotions?) Order taking (EDI? In person? Involved?) Product preparation (Standard? Custom?)
Special Interaction Requirements
5. Order response time (Hours? Days? Weeks?) Frequency (Time per day? Irregular?) Order quantity (Individuals? Individ uals? Truckloads?) Truckloads?) Standard Delivery and 6. Product shipment norms (Parcel? Truckload?) Order Requirement Requirements s Destination locations (Clustered? Scattered/Rural?) Packaging (Returnable? Custom?) Demand patterns (Seasonal? Seasonal? Derived or “pulled” “pulled” deman d emand?) d?) 7. Product handling characteristics ( Binnable? Bulk? Liquid?)
variability (Predictable? variance?) Highly 8. Demand Product Product substitutabi subs titutabilit lity y (Unique?High interchangeable?)
Cost of no stock/no stock/no delivery deli very (Lost sale? Plant
Handling Requirements Inventory Inven tory Requirements Requirements
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