Intro to Supply Chain
Global Transportation and Distribution Strategies
Definition
600 characters
Distribution is all about getting your product or services to right people at the right time, thus a global distribution strategy is a plan created by the management that specifies how the firm intends to transfer its products to intermediaries, retailers and end consumers (Munusamy, 2011).
A distribution strategy defines how you are going to move products from point of creation to points of consumption, in a cost-effective manner and also defines how the organisation is going to create and satisfy demand for your products. Also a global distribution strategy must also define how the organisation is going to manage their brand(s) within different countries, cultures and country specific legal requirements (O’really, 2005).
Description
2,400 characters
• A brief explanation of who the main proponents of the topic are, when and where it was conceived
Globalisation has been a trend over the last two decades, particularly in Logistics and distribution, thanks to advancing technology, new political/economic environments and the elimination of trade barriers (Cooper, 1993). Transportation and distribution strategies falls into a larger umbrella called Supply Chain Management (SCM), more specifically inside Logistics. SCM is based on four mayor strategic decision areas; location, production, inventory and transportation (distribution) (Intro to supply CM). A Transportation and distribution strategy is key in the value chain for global companies and is a fundamental part of the logistics process as part of the global supply chain models (Chopra and Meindl, 2007: 54; Vidal. 1997). The concepts of logistics and supply chain management are related to each other, however they have distinct differences. SCM can be viewed as higher tier of a network of logistics systems and related activities of the individual supply chain members (Coyle et al., 2009). In the other side, Logistics is the
Definition
600 characters
Distribution is all about getting your product or services to right people at the right time, thus a global distribution strategy is a plan created by the management that specifies how the firm intends to transfer its products to intermediaries, retailers and end consumers (Munusamy, 2011).
A distribution strategy defines how you are going to move products from point of creation to points of consumption, in a cost-effective manner and also defines how the organisation is going to create and satisfy demand for your products. Also a global distribution strategy must also define how the organisation is going to manage their brand(s) within different countries, cultures and country specific legal requirements (O’really, 2005).
Description
2,400 characters
• A brief explanation of who the main proponents of the topic are, when and where it was conceived
Globalisation has been a trend over the last two decades, particularly in Logistics and distribution, thanks to advancing technology, new political/economic environments and the elimination of trade barriers (Cooper, 1993). Transportation and distribution strategies falls into a larger umbrella called Supply Chain Management (SCM), more specifically inside Logistics. SCM is based on four mayor strategic decision areas; location, production, inventory and transportation (distribution) (Intro to supply CM). A Transportation and distribution strategy is key in the value chain for global companies and is a fundamental part of the logistics process as part of the global supply chain models (Chopra and Meindl, 2007: 54; Vidal. 1997). The concepts of logistics and supply chain management are related to each other, however they have distinct differences. SCM can be viewed as higher tier of a network of logistics systems and related activities of the individual supply chain members (Coyle et al., 2009). In the other side, Logistics is the