Merge in Transit, a distribution method in the industrial environment

The rapid changes confronted by the world economy in the last years have had a notable impact on the procedures adopted for the commercial business on a global basis. The increased number of sales transactions arising from internationalisation and globalisation processes is requiring a greater attention to the logistics services procedures.

Companies are searching efficient distribution methods that enable broad product assortment, lower level of inventories, shorter customer order fulfilment, lower transportation costs in order to achieve a more efficient procurement process and a improved customer service. This paper will focus on a new solution in supply chain design to solve these trade-offs between management cost cutting and higher customer level….

Contents

1 Introduction
1.1 PROBLEM AREA
1.2 PURPOSE
1.3 DELIMITS
1.4 OUTLINE
2 Methodology
3 Theoretical framework
3.1 DISTRIBUTION CHANNELS
3.1.1 Manufacturer storage with direct shipping or drop shipping
3.1.2 Manufacturer storage with direct shipping and in-transit merge
3.1.3 Distributor storage with package carrier delivery
3.1.4 Distributor storage with last mile delivery
3.1.5 Manufacturer or distributor storage with customer pickup
3.1.6 Retail storage with customer pickup
3.2 PROCESS IMPROVEMENT WITHIN DISTRIBUTION CHANNELS
3.3 MIT EFFECTS, REASONS, PERFORMANCE COMPARISON
3.3.1 Effects of MIT
3.3.2 Drivers of the effects of MIT
3.3.3 Key concepts within MIT
3.3.4 Comparison between MIT and central and local warehouses approaches from a different prospective
3.3.5 Motivation
3.4 A MODEL TO SUPPORT COMPANIES IN THEIR CHOICE OF SUITABLE DISTRIBUTION CHANNEL
3.4.1 Scenario construction
3.4.2 Evaluation of the scenario
3.4.3 Implementation of information system and evaluation of the product centric control
4 Analysis
4.1 DISTRIBUTION CHANNELS
4.2 MERGE IN TRANSIT: DEFINITION OF THE MODEL
4.3 BUSINESS SUITABILITY
4.4 ORGANISATION REQUIREMENTS
4.5 FURTHER SUGGESTIONS
5 Conclusions and discussions
6 References
7 Appendix: calculation model for delivery costs
7.1 ORDER PICKING
7.2 TRANSPORTATION
7.3 CONSOLIDATION
7.4 ORDER RECEIVING
7.5 WAREHOUSING

Author: Gattolin, Elena

Source: Jönköping University

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