E-Distribution

by Lawrence, Barry; Jennings, Daniel F.; Reynolds, Brian E.

• ISBN13: 9780324121711
• ISBN10: 0324121717
• Edition: 1st
• Format: Hardcover
• Copyright: 2002-07-25
• Publisher: Cengage Learning

Summary

E-Distribution provides an understanding of the role of the distributor in the supply chain and presents an E-Business Model that allows the integration of the customer into the distributor's operations. E-Distribution was developed from nine research projects that were funded by business firms and industry associations. E-Distribution provides information on how forecasting, purchasing, decision-making, inventory management, and vendor relationships can be accomplished within an e-commerce environment. The text stresses the importance of e-commerce and developing contemporary distribution models to leverage the power of technology within business distribution systems.

Table of Contents

Preface	xi
About the Authors	xiii
part 1
The Changing Face of Distribution	2	(14)
Introduction	3	(1)
The Disintermediation Myth	4	(3)
The State of Distribution Channels	7	(1)
Manufacturer Direct Fallacies	7	(3)
The Distributor's Role in the Supply Chain: A Prescription	10	(2)
Summary	12	(4)
Strategic Supply Chain Management for Distribution	16	(10)
Introduction	17	(1)
The Evolution of Supply Chain Management	18	(2)
Supply Chain Management Goals	20	(1)
New Expectations for Distributors	21	(2)
Customer Alliances	23	(1)
Supplier Alliances	23	(1)
Evolving Channels	24	(2)
Tactical Planning for Modern Distribution	26	(12)
Introduction	27	(1)
How E-business Will Reshape the Distributor	27	(3)
Matching Distribution Processes to Information Technology	30	(2)
Process Mapping Distribution	32	(1)
From Process Mapping to Organizational Realities	33	(5)
part 2
The E-business Model	38	(17)
Introduction	39	(1)
Alternative Channels of Distribution	39	(9)
Manufacturer Direct Sale to the End User	40	(2)
Manufacturer as Information Controller	42	(2)
Distributor as Information Controller	44	(1)
The Mixed Model	44	(3)
The Independent Infomediary (The Cannibal)	47	(1)
The E-channel	48	(5)
The End-User Connection: E-marketing and E-sales	49	(3)
The Back End: E-resource Management and E-procurement	52	(1)
Conclusion	53	(2)
Distribution Sales and Marketing Under E-business	55	(14)
Introduction	56	(1)
The Value of Information	56	(7)
Distributor Compensation	58	(1)
Information Compensation	59	(1)
Justifying Investments with Sales	60	(3)
Sales Information	63	(2)
Sales Automation	64	(1)
Marketing Information	65	(2)
E-catalogs	65	(2)
Conclusion	67	(2)
Using E-business Partners to Integrate the Customer into the Distributor's Operations	69	(15)
Introduction	70	(1)
Market Makers and Application Service Providers	70	(4)
Choosing an E-business Partner	71	(2)
Justifying the Cost of the E-business Partner	73	(1)
E-business in High-Service Environments	74	(10)
Vendor Managed Inventory and E-business	75	(2)
Integrated Supply	77	(7)
E-business: Tools for Customer Relationship Management	84	(18)
Introduction	85	(1)
Defining CRM for Distribution	85	(2)
Hardware Needs	87	(1)
Software Needs	88	(8)
Types of Analysis	89	(1)
Anticipating and Meeting Customer Needs	89	(7)
Developing New Opportunities	96	(1)
Catalog Development	97	(1)
Back-Office Integration	98	(1)
Conclusion	99	(3)
part 3
Forecasting in an Information-Rich Environment	102	(23)
Introduction	103	(1)
Cycle Times and Forecasting	104	(3)
The Cost of Forecast Error	107	(7)
Holding Costs	108	(2)
Stockout Cost	110	(4)
Forecasting Methods	114	(6)
Moving Averages	115	(1)
Exponential Smoothing	116	(3)
Other Mathematical Techniques	119	(1)
Combination Forecasting: The Information Edge	120	(2)
Integrating the Sales Force	122	(3)
Scientific Purchasing Enabled by Improved Information	125	(20)
Introduction	126	(1)
Planning and Replenishment	126	(8)
ABC Classification of Inventory	134	(5)
Order Quantity	139	(2)
Step-by-Step Planning and Replenishment	141	(2)
Specials and New Product Introductions	143	(1)
Conclusion	143	(2)
System Visibility: Measuring and Improving Distribution Channel Management	145	(17)
Introduction	146	(1)
Real-Time Systems	147	(1)
Customer Service Metrics	148	(2)
Internal Operations Metrics	150	(8)
Process Control Charts	154	(3)
Purchasing/Planning Metrics	157	(1)
How Visibility Improves Inventory Management	158	(4)
part 4
Standardization and Successful E-business 'Relationships	162	(9)
Introduction	163	(1)
Back-Office Integration	164	(3)
XML and the Search for Standards	167	(2)
EDI Past, Present, and Future	169	(1)
Conclusion	169	(2)
Performance Metrics in the Connected World	171	(16)
Introduction	172	(1)
Control and Measurement	173	(11)
Marketing and Sales	176	(1)
Purchasing	177	(5)
Operations	182	(1)
Transportation	183	(1)
Executive (Financial)	184	(1)
Connecting the Supply Chain through Metrics	184	(1)
Conclusion	185	(2)
E-distribution Strategy	187	(19)
Introduction	188	(2)
The Strategic Management Process	190	(3)
Strategic Intent	191	(1)
Strategic Mission	191	(1)
Resources	191	(2)
Capabilities	193	(1)
Core Competencies	193	(3)
Core Competencies of Electrical Distributors	194	(2)
Competitive Advantage	196	(1)
A Sustainable Competitive Advantage	197	(1)
Organizational Strategy	197	(2)
Is One Strategy Better Than Another?	199	(1)
Organizational Structure	199	(2)
Mechanistic and Organic Structure	199	(1)
Effect of Context and Design on Organizational Structure	200	(1)
Organization Structure and Competitive Advantage	200	(1)
Conclusion	201	(5)
part 5
ERP/E-business and the Small Distributor	206	(12)
Case Study: Ray Distributing	206	(1)
Background	207	(1)
Customer Relationships	207	(1)
Vendor Managed Inventory	208	(1)
Integrated Supply	208	(1)
The Internet	209	(1)
Enterprise Resource Planning	209	(7)
Forecasting	209	(1)
Reorder Point Calculations	210	(1)
ABC Analysis	211	(1)
Order Quantity	212	(1)
Other ERP Obstacles	213	(1)
Ray Manufacturing	214	(1)
Other Suppliers	215	(1)
Connecting the Ray Distributing Supply Chain	215	(1)
Conclusion	216	(2)
Connecting the Supply Chain	218	(15)
Case Study: My Plumbing Supply	218	(1)
Background	219	(1)
Connecting the Customer	220	(4)
Connecting Distribution and Planning	224	(3)
Connecting Internal Suppliers	227	(1)
The Demand Management Solution	228	(2)
Centralized Purchasing	228	(1)
Combination Forecasting	228	(1)
Reorder Point Logic and ABC Analysis	229	(1)
Aggregate Planning	230	(1)
Conclusion	230	(3)
Index	233