Physical Distribution Management - Assignment Example

The second part of the work at hand presents the remarkable answer to the idea that “Optimally configuring a supply chain requires warehousing to be considered as an integral part of the supply chain design process”. Adhering to the ultimate principle of Porter concerning the value chain model, the work at hand presents relevant justifications as to why warehousing is a crucial activity or service that needs to be optimized for IKEA’s advantage. There are important advantages on the part of IKEA pertaining to the optimization of its supply chain through effective warehousing activity.

Some of these advantages are justified further in the work at hand. The two topics that are included in the work at hand have revealed how important it is to make sure that the distribution system should be optimized for the advantage of both the firms and the target customers. The work at hand presents the opportunity to consider remarkable insights as to why it is important to make sure that the distribution system is at its healthy condition. In the first place, the justification of cost is included in the work at hand.

However, the association of customer value was another remarkable point. Transport and distribution management are complex processes in an organisation that tries to employ the actual concept of physical distribution management. In the advent of advanced technology and the integration of Information Technology (IT) in the actual communication process linked to distribution management, it is essential to consider how IT applications can be integrated in a dynamic firm that is actively involved in distribution operations.

On the other hand, warehousing in the supply chain design process is another consideration to ensure productive operation that will lead to the opportunity to provide high value for customers, and eventually competitive