Zone Skipping To Major Market Distribution

January 5th, 2010 at 09:32am David DiSanto - DiSanto & Associates

More companies are looking at centralized distribution and servicing their customer base in a timely manner in order to control costs, control inventory overhead and to improve overall customer service.

Centralized distribution sometimes has its own challenges and issues based on schedules, inventory and transportation network.

Other factors that should be considered is the size of the of the distribution center, the layout of the facility and capabilities of handling many more multiple shipments on a daily basis can result in many more LTL carriers.

Zone distribution to major market zones can eliminate much of the congestion and the handling of freight multiple times elevating issues with shortages, damages, and non-timely deliveries.

It is important to identify major market demographics pertaining to customer base, product distribution, field sales force and capabilities of end users and master distributors.

A major candle manufacturer based in the United States was faced with major issues such as damages, lost shipments, inventory shortages and untimely deliveries.

By developing major market zones utilizing 80/20, the manufacturer was able to overcome many of the above challenges and issues by driving carrier tender to specified market zones based on schedules ultimately utilizing local end-user delivery suppliers.

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Entry Filed under: Functionality, Optimization, Outsourcing, Spend Analysis, Supply Management Best Practices, supply chain talent