Effective Distribution Strategies

Go through the scenario. 

Your task is to determine which distribution strategy is best for the company.  Choose a solution and in one paragraphs make a clear and specific recommendation based on the readings in the class so far. In a second paragraph, describe how the company can implement your recommendation. Write your recommendation/implementation in third person.  Include a cover page.

At the end, discuss the questions that are presented below.

Please complete the following "Distribution Strategy" scenario.

Effective Distribution Strategies

Scenario Description:

You are the new Warehouse Manager for Wonderful Widgets. The company produces one product, widgets, but has several customers located domestically and internationally.

The Problem:

Corporate has informed you over the last 12 months, the company has incurred increased costs, increased variability, and decreased customer satisfaction (lost sales).

Additional Information:

Due to this new information, you are responsible for making all decisions pertaining to product distribution. You are the person accountable for the increase in costs, variability, and customer satisfaction. The company has warehouses located across the United States.

Decision Point:

Your task is to determine which distribution strategy is optimum for the company to reduce cost, variability, and increase customer satisfaction. You must decide which strategy is best for the company based on the information given.

Choices:

Centralized Management, Cross-Docking, Transshipping

The best strategy is (Centralized Management Strategy):

Centralized Management Strategy would be the optimal decision based on the current information. Centralized systems allow for integration of information flow between all facilities (single point contact) and decisions are made across the company’s network by utilizing partnerships and alliances.

Wonderful Widgets would best served if they were to use a centralized management strategy. They have one product that is shipped from various locations domestically. The placement of their warehouses (distribution centers) allows them to share information across their to coordinate activities which serves their customers, reduce costs and variability.

Answer the following questions:

What did you find challenging in completing the scenario (i.e., information network layout, etc.)?How does this additional information factor into effective distribution strategies?Provide your response by uploading a Word document. Use this format:

- Recommendation for Distribution Strategy

- Implementation

- Questions