BU435 Chapter Notes - Chapter 4: Customer Experience, Peapod
Document Summary
Chapter 4: designing distribution network and application to online sales. 4. 1 the role of distribution in the supply chain. Distribution the steps taken to move and store a product from the supplier stage to a customer stage. Key driver of the overall profitability of a firm b/c it affects both the sc cost and the customer value directly. Process of designing a distribution network has 2 broad phases: broad structure of the sc network is visualized. Decides the # of stages in the sc and the role of each stage: takes the broad structure and concerts it into specific locations and their capability, capacity, and demand allocation. At the highest level, performance of a distribution network should be evaluated along 2 dimensions: value provided to the customer, cost of meeting customer needs. Customer value is affected by many factors; we focus on measures that are influenced by the structure of the distribution network:
