6.2.3 Distribution
The challenge of distribution of finished goods appears to be more onerous compared to the management of inbound transportation. Firms are more concerned about distribution and there are numerous reasons for this. These are:
- Most large manufacturing firms are in control of the distribution of their products and find it logical to implement plans to streamline distribution to decrease cost and to improve service.
- The quickness with which a firm can respond to customer orders is greatly dependent on the firm's distribution ability. It is therefore a measure of the firm's customer responsiveness.
- The finished products are usually of greater value compared to raw materials.