The purpose of this report is mainly focus on the analysis of distribution strategies. The distribution strategies is a very systematic and comprehensive strategy in the logistic and supply chain management. This report divides the distribution strategies into four parts to analyse it comprehensively. There are centralized and decentralized decision-making management strategy, cross-docking strategy, postponement strategy and outsourcing strategy.
Firstly, it introduces the centralized and decentralized decision-making management for distribution. It is mainly focus on the comparison of two kinds of the decision-making management and their advantages and disadvantages. Meanwhile, under the centralized and decentralized decision-making management, it puts forward the centralized and decentralized facilities strategy. Also, it is focus on their comparison and advantages and disadvantages analysis
Secondly, it introduces the cross-docking strategy. It provides the overview of the cross-docking overview firstly. It mainly focus on analyzing the benefits and limitations. Understanding the advantages and disadvantages of cross-docking and how they fit with the organizations is an important step for evaluating the supply chain process and deciding whether cross-docking is right for the organization. Organizations have to make sure they understand the key factor requirements.
Thirdly, it introduces the postponement strategy which content include the customer order decoupling point (CODP) based strategy and different postponement strategy. The final objective of postponement strategy is to achieve seamless connection between product or services and consumers’ needs and improve enterprise flexibility and customer value accordingly.
Finally, it introduces the outsourcing strategy. In this case, Outsourcing strategy has definitely entered the spotlight which is adopted by more and more companies these years. It includes the content about the background, classification of outsourcing, phases of the outsourcing processes and advantages and disadvantages.
In the end of every strategy section, it provides the recommendations and summed up concisely for further research.
1.0 Literature review
More particular and detailed information about literature review are provided in the table at appendix.
In brief, this report uses different kinds of literature as references. When it comes to the centralized and decentralized management, it uses the Shuguang Liu, Jun Lin, Karen A. Hayes (2010) pointed out that the comparison of risk pooling of centralized facilities and local facilities. It is help for analyzing the difference between centralized and decentralized management.
Uday and Viswanathan (2000) present the framework of designing and understanding cross docking systems and provide techniques which will improve efficiency of the distribution operation and logistics. It is helpful for analyzing the framework of designing and understanding cross-docking systems. Ray, S. & Jewkes, E.M. (2004) introduced the background of implementing postponement strategy. Lonsdale, Chris Cox, Andrew (2000) focused on outsourcing and its place in this bigger picture, the discussion of history of outsourcing is also a main point.
2.0 Outline of strategies
2.1 Centralized and decentralized decision-making strategy Overview Generally speaking, the centralized decision-making based on a central location to make the decisions for the entire supply network.The cost of the system should be minimized and subject to satisfying the service-level requirements. Also, the centralized control could lead to global optimization.Under the centralized management, it usually implements the centralized facilities strategy. The centralized facilities means that there is a central warehouse or a manufacture.
Decentralized decision-making means that each facility identifies its most effective strategy without considering the...
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