Global Transportation and Distribution Strategies
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
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 entire...
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