The Logistics of Direct-to-Consumer

The Logistics of Direct-to-Consumer

November 22, 2017

Article Title: Making eCommerce Logistics Fulfillment Channels Work in Today’s Direct-to-Consumer Market

Author of Article: Jagged Peak

Date of article: November 13, 2017

Source URL: http://www.supplychain247.com/article/making_logistics_work_in_todays_direct_to_consumer_market/news

This article describes the direct-to-consumer (D2C) market development.  Established companies will need to develop new D2C distribution channels without upsetting the retail distribution relationships.  Start-up firms must develop the logistics systems to meet growth in the D2C market.  All firms must develop customer relationships that add value in order to compete in the D2C marketplace.

Discussion Questions
1. In the D2C market, what are “virtual service relationship” service delivery considerations for an established firm?

Guidance: Review service delivery design considerations and customer relationship management. Students could then develop a service-blueprint to identify areas to add value to the customer relationship and to address service recovery systematically.

2. What are the logistics design considerations for a start-up firm entering the D2C market? How would international sales change the logistics planning?

Guidance: Students may develop a value stream map of a proposed lean supply chain for a start-up firm.  It may be helpful to have the students choose a new product or find a small firm in a Continue reading

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Ramping Up for Bargain Days

Ramping Up for Bargain Days

November 20, 2017

Article Title: What impact are bargain days having on peak planning and supply chain?

Author of Article: Andrew Tavener

Date of article: November 10, 2017

Source URL: http://www.supplychaindigital.com/scm/what-impact-are-bargain-days-having-peak-planning-and-supply-chain

Supply chains have to deal with the growing impact of ‘bargain days’ on inventory management and logistics delivery.  Instead of traditional peak demand seasons, firms are increasingly experiencing peak demand year round due to marketing promotions.

Discussion Questions
1. How can the bullwhip effect be controlled when dealing with a responsive supply chain that includes forward buying as a major issue?

Guidance: Review the differences between an efficient and responsive supply chain; review the bullwhip effect. Students should be asked to outline the steps to take to minimize the bullwhip effect. The discussion should include the use of technology to track inventory and plan ahead with collaborative forecasting.

2. What difference will dependent versus independent demand have on the inventory required for peak planning periods in a responsive supply chain?

Guidance: Review dependent and independent demand for inventory. Ask students to argue for and against the Q-model and the P-model in regards to the different types of demand. Which model is best suited for peak demand? Continue reading

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Gucci Designs its Supply Chain

Gucci Designs its Supply Chain

November 16, 2017

Article Title: Gucci’s Surge and the Power of a Responsive Supply Chain

Author of Article: BOF Team

Date of article: October 27, 2017

Source URL: https://www.businessoffashion.com/articles/this-week-in-fashion/guccis-surge-and-the-power-of-a-responsive-supply-chain (Professional BOF membership required to access the article.)

With third-quarter revenue up 28%, Gucci is doing something right. The article describes Gucci’s moves to a more responsive supply chain by focusing on vertical integration of design and production.  Their focus on just-in-time manufacturing is intended to cut lead time from weeks to days.

Discussion Questions
1. How does Gucci create an order winner in the digital age?

Guidance: Review order winners/qualifiers, lean manufacturing and lean supply chains;  Students can then create a table showing order qualifiers relationship to lean manufacturing and lean supply chain concepts that help support the order qualifiers.  A discussion then can then ensue about which order qualifiers can become order winners for Gucci.

2. Can a supply chain be responsive without a just-in-time business model?

Guidance: This is a thought question for students to grapple with via classroom debate.  Suggest having half the class develop a 2 minute presentation arguing that only responsive supply chains require just-in-time and the other half Continue reading

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