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physical shopping, shoppers after having visited the store sand chosen the goods and paid for them at the counters, are also required to arrange for the delivery of the goods. Either they themselves carry the goods back home or fix up with others to have them delivered. In other words, they do this at their own expense, both in terms of time and money. Replicating this operation efficiently down to an individual consumer can prove to a difficult task for a Web merchant. Financing it can make the job even harder dis the delivery problems revealed that the distribution system of traditional retailers is at a sadvantage. Even Wal-Mart, which is rated highly for its distribution system, found its system unable to cope with individual orders. It, therefore, decided to outsource its distribution. I outsourcing al ways the answer? It certainly seems to work for long distance deliveries by road UPS for example has been the biggest beneficiary of the e-commerce boom. But there is a problem. Many e-commerce firms are finding it risky to opt for outsourcing for picking and packing. The contractor working for many Web merchants will not be able to give all of them equal priority. Precisely for this reason, more and more e-commerce merchants are planning to ave their own giant automated warehouses. For example, Web van, an online grocery store in the US, proposes to spend $l billion on building a string of state-of-the art warehouses throughout the uS 11.2 Electronic commerce logistics model 11. 2.1 The general model for electronic commerce logistics This is to introduce a The Cutting-Edge Logistics Model Synchronizing the Flows of Goods, Information and Funds. First, Global commerce marches on-$10B/day $10B/second Second, nature of business is becoming more complex. So, Comprehensive model is needed to solve problems the approach is as follows Utilize The UPS Store retail network for convenient drop-off of laptops Utilize UPS's package delivery network for goods movement UPS Supply Chain Solutions handles parts management and technical repair Through we can get the results Eliminated multiple transportation steps and centralize parts and repairs Saved millions of dollars by streamlining its service operations Gained better inventory visibility Gained valuable data about product performance Achieved an edge in the fiercely competitive PC market Another model is THE SUPPLY CHAIN LOGISTICS SIMULATION MODEL The purpose of the Supply Chain Logistics Simulation Model is to provide macro level education and training for Supply Chain Logistics Management that is focused on Lean Enterprise concepts using a"Live"simulation model and interactive workshop approach The model provides a platform for participants to view, and execute an operating supply chain enterprise from an integrated macro perspective encompassing suppliers, consolidators, manufacturing plants, distribution warehousing, transportation, and customers within a"Class Room"training environment. The Supply Chain Logistics workshop provides both lecture and nds-on Supply Chain Logistics model training to test new concepts and variables using Design-Of-Experiment"techniques that focus on improving and optimizing the Lean Enterprise Supply Chain System. Workshop Supply Chain Logistics Model concepts and variables include Lean Enterprise-wide integration( Marco perspective Supplier Network Outsourcing and Consolidation Operations Lean Production Manufacturing Systems Distribution Warehousing Systems Acquisition and Consolidation of Manufacturing Plants Information Systems/E-Commerce/B-To-B Information, etc Customer Fulfillment and Satisfaction A working model will be used in the demonstration. The model requires a work team of 15 individuals(minimum)who will supply, manufacture, transport, warehouse, distribute and ship products to the customer in a simulated supply chain geographic region. Simulated support functions will be included for: Demand Forecasting, Customer Order Entry, Production Planning,physical shopping, shoppers after having visited the store sand chosen the goods and paid for them at the counters, are also required to arrange for the delivery of the goods. Either they themselves carry the goods back home or fix up with others to have them delivered. In other words, they do this at their own expense, both in terms of time and money. Replicating this operation efficiently down to an individual consumer can prove to a difficult task for a Web merchant. Financing it can make the job even harder. The delivery problems revealed that the distribution system of traditional retailers is at a disadvantage. Even Wal-Mart, which is rated highly for its distribution system, found its system unable to cope with individual orders. It, therefore, decided to outsource its distribution. Is outsourcing always the answer? It certainly seems to work for long distance deliveries by road. UPS for example has been the biggest beneficiary of the e-commerce boom. But there is a problem. Many e-commerce firms are finding it risky to opt for outsourcing for picking and packing. The contractor working for many Web merchants will not be able to give all of them equal priority. Precisely for this reason, more and more e-commerce merchants are planning to have their own giant automated warehouses. For example, Web van, an online grocery store in the US, proposes to spend $1 billion on building a string of state-of-the art warehouses throughout the US. 11.2 Electronic commerce logistics model 11.2.1 The general model for electronic commerce logistics This is to introduce a The Cutting-Edge Logistics Model – Synchronizing the Flows of Goods, Information and Funds. First, Global commerce marches on– $10B/day $10B/second. Second, nature of business is becoming more complex. So, Comprehensive model is needed to solve problems the approach is as follows: ▪ Utilize The UPS Store retail network for convenient drop-off of laptops ▪ Utilize UPS’s package delivery network for goods movement ▪ UPS Supply Chain Solutions handles parts management and technical repair Through it we can get the results: ▪ Eliminated multiple transportation steps and centralize parts and repairs. ▪ Saved millions of dollars by streamlining its service operations. ▪ Gained better inventory visibility. ▪ Gained valuable data about product performance. ▪ Achieved an edge in the fiercely competitive PC market. Another model is THE SUPPLY CHAIN LOGISTICS SIMULATION MODEL. The purpose of the Supply Chain Logistics Simulation Model is to provide macro level education and training for Supply Chain Logistics Management that is focused on Lean Enterprise concepts using a “Live” simulation model and interactive workshop approach. The model provides a platform for participants to view, and execute an operating supply chain enterprise from an integrated macro perspective encompassing suppliers, consolidators, manufacturing plants, distribution warehousing, transportation, and customers within a “Class Room” training environment. The Supply Chain Logistics workshop provides both lecture and hands-on Supply Chain Logistics model training to test new concepts and variables using “Design-Of-Experiment” techniques that focus on improving and optimizing the Lean Enterprise Supply Chain System. Workshop Supply Chain Logistics Model concepts and variables include: ▪ Lean Enterprise-wide integration (Marco perspective) ▪ Supplier Network ▪ Outsourcing and Consolidation Operations ▪ Lean Production Manufacturing Systems ▪ Distribution Warehousing Systems ▪ Acquisition and Consolidation of Manufacturing Plants ▪ Information Systems / E-Commerce / B-To-B Information, etc. ▪ Customer Fulfillment and Satisfaction A working model will be used in the demonstration. The model requires a work team of 15 individuals (minimum) who will supply, manufacture, transport, warehouse, distribute and ship products to the customer in a simulated supply chain geographic region. Simulated support functions will be included for: Demand Forecasting, Customer Order Entry, Production Planning
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