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Design the Omni-Channel Supply Chain with Integrated Optimization and SimulationPanel Discussion with Cabela’s, Michael Kors and LLamasoft
Today’s Presenters
Toby BrzoznowskiExecutive Vice President,LLamasoft, Inc.
Earl DavisDirector of Retail Supply Chain,Cabela’s, Inc.
Peter HunnewellDirector, Supply Chain Strategy,Michael Kors
Cabela’s, Inc.
Outdoors retailer: hunting, fishing, camping, etc.
Began as catalog-only company in 1961
First store: 1991—Now 78 North American stores, 8 opening 2016
Started .com page: 1998
Went public: 2004
First ship from store: 2013
Currently have five distribution centers and one returns center—Retail and direct share inventory
2014 total revenue: $3.65 billion
Destination shopping experience
Superior customer service
Michael Kors
Global accessories, footwear and apparel company
1981: The Michael Kors label was born
2006: Michael Kors opens its first retail stores in the US
2011: Michael Kors Holdings Ltd. launches IPO
2013: eCom launched
2015: First ship from store
FY 2015 total revenue: $4.37 billion
LLamasoft
Global leader in supply chain design software and solutions
Founded in 1998
Supported more than 2,000 supply chain design initiatives
Over 100 supply chain design consultants
Customers include largest global companies, logistics and consulting firms, military supply chains and global health initiatives
Over 50% of Fortune 100 supply chains designed with LLamasoft
SERVICE & PERFORMANCE METRICSHow does a change in inventory policy effect my service rates?How many shipments will be late?Am I at risk of hitting capacity constraints?Will this new schedule improve throughout?
With Volatility and Change Come More Questions To Answer
PRODUCT FLOWHow much does it cost to serve each customer?Which ports should I be using?Should I consolidate my inbound through a cross-dock?
TRANSPORTATIONHow many routes & assets do I need?What if I change delivery frequency?How can I reduce my empty miles?Can I combine inbound and outbound shipments?
INVENTORYHow much inventory do I need?How much does it cost to increase my service levels?Where should I stock each product?
PRODUCTION FOOTPRINTWhen should I pre-build?Where should I make each product?Do I have the right balance of capacity?Should I be outsourcing production?
NETWORK STRUCTUREShould I lease of build new sites?Who should source each customer?When do I need more capacity?How do I consolidate assets? PRODUCT DEMAND
How are customers buying our products?How should I segment different customers and products?
There is Seemingly No
Limit to the Questions
The Third Discipline of Supply Chain Management
DESIGN
Network strategyRoute modeling
Demand segmentationEnterprise simulation
Inventory policy analysisProduct flow-path designService-level optimization
PLANNING
Enterprise resource planningProduction planning & scheduling
Inventory management & planningSales & operations planning
Demand forecastingSourcing & procurement
Integrated business planning
EXECUTION
Transportation managementWarehouse managementWorkforce management
Yard managementTracking & tracing
Global trade management3rd party scheduling & billing
Introduction: Omni-Channel Means Re-Thinking & Re-Designing Many Aspects of Retail Supply Chain
Supply chain network structure
Inventory positioning
Transportation:
Mode shifts
Service shifts
3PL vs. internal
Parcel usage
Inbound and outbound flow changes
Role of store changes
Changing service goals
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