Categories: Supply Chain
A 3PL provides warehousing, transportation and fulfillment as a service. This includes arranging pick up and delivery of orders from manufacturers and trucking to a distribution center (DC) and all associated billing, scheduling, payment and warehousing services.
The supply chain operations reference model (SCOR) is a management tool used to address, improve, and communicate supply chain management decisions within a company and with suppliers and customers of a company (1). The model describes the business processes required to satisfy a customer’s demands. It also helps to explain the processes along the entire supply chain and provides a basis for how to improve those processes.
A self-service supermarket is a single channel. A self-service supermarket that also supports online ordering is omnichannel. You can buy through either the physical store channel or the online channel. Novastore by Alert Innovation is an example of an Omnichannel Fulfillment Center.
Most product is shipped to stores in full cases. This is the conventional way to replenish inventory. However, smaller stores or slower moving items might not need a full case. Thus cases are opened at the to facilitate individual item picking and shipment to the stores from the DC, FC or MFC in less than case levels.
A distribution node between manufacturing and retail locations, where products are temporarily stored before delivery to multiple stores. Typically hundreds of thousands of square feet. Used to replenish inventory for the stores it serves.
Direct store delivery (DSD) describes a method of delivering product from a supplier/distributor directly to a retail store and, in some cases, including placement on the correct store shelf, thereby bypassing a retailer’s distribution center and eliminating a substantial amount of retailer labor cost.
A CFC is a centrally located warehouse that can replenish inventory for a number of stores and/or also provide direct order fulfillment to customers. Fresh Direct’s New York installation would be an example of the latter. A CFC contains the full product assortment necessary to serve customers in the area. Direct store delivery and fresh/prepared foods do not necessarily fit easily into this model.