13. 11/12/09 Push based supply chain system . Demand forecasting Order Placed to supplier Placed in shelf for customer Goods sold Goods not sold retailer bear the loss PRESNTATION BY:- SUNIL & SHIV SHANKAR
29. PRESNTATION BY:- SUNIL & SHIV SHANKAR 10- Collaborative Logistics and Distribution Outsourcing It create greater economies of Scale. Internet-based exchange of data and Information. Significant decrease in inventory levels and more efficient logistics Companies focus on core competencies PRESNTATION BY:- SUNIL & SHIV SHANKAR
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34. In 1970s, Wal-Mart first used hub-and-spoke system. Under the system, goods were centrally ordered, assembled at a massive warehouse, known as ‘distribution center’ ( hub ), from where they were dispatched to the individual stores ( spoke ). The hub and spoke system enabled Wal-Mart to achieve significant cost advantages by the centralized purchasing of goods in huge quantities & distributing them through its own logistics infrastructure to the retail stores. Hub & Spoke Model PRESNTATION BY:- SUNIL & SHIV SHANKAR
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37. 11/12/09 Using EDI for Procurement The computer systems were connected to suppliers. EDI enabled the suppliers to download purchase orders along with store-to-store sales information relating to their products sold. On receiving information about the sales of various products, the suppliers shipped the required goods to Wal-Mart’s distribution centers.
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