Dian Ahsani Fayutika

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SUPPLY CHAIN MANAGEMENT ASSIGNMENT

1. Please identify and explain each key factor to be considered when

designing a distribution network!
• Response Time
Reaction time is the measure of time a pixel in a showcase
takes to change. It is estimated in milliseconds (ms). Lower numbers
mean quicker changes and in this manner less noticeable picture
relics.
The reaction time is the aggregate of the administration time,It is
critical to obviously show to workers that we expect certain "standard
reaction times." That is, we should be clear to what extent a
representative may take to react to a request or question, regardless
of whether by email or content, by others in the association.

• Product Variety
Item assortment is a class of plans of action that look for an
upper hand by offering more assortment than the opposition. Offering
an enormous number of item and administrations from a solitary
area, offering various administrations from a solitary source, and
offering the products of numerous providers from a solitary source.
Those are the normal sorts of plan of action dependent on item
assortment.

• Product Availability
An inventory network can utilize a significant level of item
accessibility to improve responsiveness and pull in or satisfy clients,
yet that could require enormous inventories and the comparing
conveying costs. An ideal degree of item accessibility is one that
amplifies a firm benefit. Firms in various enterprises, and even firms
inside a similar industry have various procedures and levels of item
accessibility. Extraordinary firms must recognize the variables that
impact the ideal degree of item accessibility. When recognized, this
data can be utilized to decide the ideal degree of item accessibility to
streamline monetary outcomes.

• Customer Experience
Client experience is the clients' all encompassing impression of
their involvement in your business or brand. Conveying an
 extraordinary client experience is immensely significant for any
business. The better experience clients have, the more recurrent
custom and positive surveys that will be get, while all the while
diminishing client's objections and returns. A positive client
experience brings about fulfilling your client, however it can likewise
prompt extra income. The best advertising cash can purchase is a
client who will advance your business, since they'll allude their loved
ones to you, complimentary.

• Order Visibility
Request perceivability is the capacity to follow a request
through the satisfaction and delivery process. In the event that you
can't follow it, it will prompt more messages, calls, pointless
correspondence and a disappointed client or poor client experience.

• Returnability
Returnability is the straightforwardness with which a client can
restore a harmed item. Be that as it may, it includes cost as well.
Returnability is most noticeably awful when a harmed decent must be
come back to the assembling site from where it was initially sent.
Along these lines, direct get from client area by the conveyance
vehicle or return at the retail location are the most reasonable
methodologies.

2. Analyze Indomaret/Alfamart, how they manage to design their

distribution network! Depending on your analysis what kind of
Delivery Network Designs they are using?

Alfamart applies Retailer Storage with Customer Pick-Up in their

dissemination arrange structure. The stock is put away locally at retail
locations. Clients stroll into the retail location, or submit a request on
the web, or by telephone and get it at the retail location. Clients may
go to these retail outlets whenever and buy the ideal items. It is most
appropriate for quick moving things or things for which clients esteem
fast reaction.

The things in the Alfamart minimarket without a doubt have been

appropriated from the organization community and routed to Alfamart
branches. The provisions of these products are sourced from Alfamart
Center. PT Sumber Alfaria Trijaya TBK, obviously, has helped out a
great deal of providers who mean to be commonly useful. Providers
from manufacturing plants of every day necessities, which are fit to
be promoted. Most importantly, the products are circulated to the
Alfamart focus, which is conveyed by a truck. Different sorts of
 essential day by day needs, which are fit to be advertised in advance,
must be set in the focal distribution center before being conveyed to
Alfamart branches. Since all merchandise that have recently shown
up from the manufacturing plant must be checked first. After
completed, all merchandise are stuffed into boxes that are fit to be
sent to the Alfamart branches. After the bundling procedure is fit to
be advertised, the obligation of the Alfamart truck driver is to
circulate the products to the assigned branches.

3. Analyze the Music Business distribution network comparing with

the old CDs/DVDs and Online Music like the one we found on the
Spotify using the key factor of the Comparative Performance?
The following table tells the comparative performance between
CDs/DVDs, and which type of the network design is best suited for the
particular music business on a scale 1-5.

FACTORS CDs/DVDs Online Music

Response Time 3 4
Product Variety 3 5
Product Availability 2 5
Customer Experience 4 5
Order Availability 2 4
Returnability 4 1
Inventory 5 1
Transportation 4 1
Facility and Handling 5 4
Information 2 5
4. Do you think distributor storage with last-mile delivery is good for
the automotive spare parts industry? Why?
Yes, I think so. Why? Because it means that they also care for the
environment and they already become a big company.and also
because since, connecting a business with the end client through a
vendor organize by utilizing the last mile conveyance is basic for long
haul business achievement. Numerous hardware and car makers rely
upon their vendors, and they will hugy affect brand dedication and
consumer loyalty. Reports distributed during the previous decade is
bringing up that item accessibility, in-time and in-full conveyance,
item quality, simplicity of return, and after deals administration
Its also essentially correspond with client faithfulness. The last mile
in the satisfaction procedure might be one of the most significant miles to
finish.

5. What are the major advantages of using the drop-shipping

distribution network?
a. Increase your cash flow: Since you don’t stock the product, you
don’t pay for it until it’s sold (after you’ve been paid for it).
b. Scalability: Test products and add new ones quickly without
bearing the burden of ordering in bulk and having something fail
(which ties up valuable time and capital expenditure).
c. Increase lifetime value of customers: With the ability to add new
and expanded product selections consistently, you can keep your
existing customers engaged and returning to see what new items
you’ve acquired. Costco stores offer a great example of this concept,
and with a drop ship program, you can offer a similar experience
online.
d. Low starting cost: You can start selling without a lot of early
investment because you don’t have to buy wholesale or cover the
cost of manufacturing your own products.
e. Enable expansion into new markets: Sometimes getting product
across international borders can be costly and challenging, but if you
partner with strategically located suppliers, you can often access the
same or similar product offerings and ship them quickly. This allows
you to test the market and validate if a given product is worth
importing.
f. Reduce costs: Every time you need to touch a product in the supply
chain, there is a cost associated. Ocean freight services, Port
Operations, LTL and FTL Services, and warehouse employees all get
added into the Cost of Goods Sold. Often, you will find that a
percentage of your product offering would net a business higher profit
margins if it were drop shipped.
g. Virtually unlimited inventory: One of the main reasons the drop
ship industry exists is to help retailers and suppliers combat inventory
distortion: the 800 billion dollar problem of over-stock clearances and
out-of-stock shelves. By tapping into inventory further up the supply
chain, theoretically you can gain access to virtually unlimited
inventory.
6. Amazon sells books, music, electronics, software, toys, and home
improvement products online. In which product category does
going online offer the greatest advantage compared with a retail
store chain? In which product category does the online channel
offer the smallest advantage (or a potential cost dis

advantage) compared with a retail store chain? Why?

As we can see, from startupbros.com, most of top selling items in
amazon is technology things and toys and games.
 Therefore, there's a consistent stream of new toys and games
throughout the entire year — which is enormous business for Amazon.
New toys and games are included each year, so there's additionally a
chance to have your items obvious to clients during the time once you
choose what to sell. Another supportive asset is Amazon's top of the
line items page for toys and games. Items on these pages are
positioned dependent on which items have the most deals. These
items are refreshed hourly, in this way, once more, there are open
doors for you to have your items unmistakable to bunches of clients.