Overview of chapter 6
We looked at the way supply chain networks are designed and the decision parameters affecting the design of the network. In the last two chapters we have looked at various optimising concepts like risk pooling and supply chain integration aimed at reduction of inventory and increasing the level of service. Our approach in this chapter will be to look at various distribution strategies which would enable a firm to integrate its supply chain activities further.
Learning outcomes
At the end of this chapter, you should be able to:
- explain why transportation and distribution need integration with other supply chain activities
- outline the options available to firms when deciding on the appropriate strategies for transportation and distribution
- outline the roles of information and technology in integrated distribution systems
- discuss the trade offs involved in centralised and decentralised distribution?
- explain the concept of a pull type logistics system and how it differs from a traditional push type system
- explain the effects a pull type system would have on distribution networks?
Topics
- 6.1 Introduction
- 6.2 Transportation and distribution
6.2.1 Transport modes
6.2.2 Inbound transportation
6.2.3 Distribution - 6.3 Centralised versus decentralised control
- 6.4 Distribution strategies
6.4.1 Direct shipment
6.4.2 Cross docking
6.4.3 Warehousing and distribution strategies
6.4.4 Transhipment - 6.5 Central versus local facilities
- 6.6 Push versus pull systems
6.6.1 Push systems
6.6.2 Pull systems - 6.7 Summary