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The concepts of supply chains and distribution channels - Essay Example
Author : mcglynnalverta
Pages 6 (1506 words)
While supply chain is a new concept, it is relatively older than people can imagine. However, initially, the concepts and practices were not clearly spelt out as it is now…
However, initially, the concepts and practices were not clearly spelt out as it is now. Most of the activities were carried out in an ad hoc manner (Lavassani, Movahedi, & Kumar, 2009, pp. 85–98). Integration of distribution and warehousing (logistics) The concept of supply chain in the company has evolved over time. Most of the segments of supply chain were loosely interconnected. However, as the company developed it had to integrate the logistics, distribution and warehousing together to take advantage of efficiency that supply chains provided. When the company realized that, it had to upgrade its operations due to efficiency brought about by the integration. The company decided to merge the two concepts to form logistics. This made the border between warehousing and distribution became transparent. However, the two ends were still loose, and the management tries to consider making the links stronger and increased the level of resource sharing. This was also coupled with reduced costs and time to market. This was the beginning of evolution in the company (Mentzer, et al, 2001, pp. 1–25) Integration if logistics with production and purchasing The company later decided to optimize the advantages of integration. The company integrated purchasing, distribution, warehousing, and production. The concept worked out right, and the saving was exceedingly. The four functions were integrated, and the core activities under each concept were conducted under the same roof. ...