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In-Transit Distribution Strategy: Hope for European Factories?
University of Skövde, The Virtual Systems Research Centre. University of Skövde, School of Technology and Society.
University of Skövde, School of Technology and Society.
Lappeenranta University of Technology, Kouvola, Finland.
2010 (English)In: Rapid Modelling and Quick Response: Intersection of Theory and Practice / [ed] Gerald Reiner, Springer London, 2010, 249-261 p.Conference paper, (Refereed)
Abstract [en]

In this research the in-transit distribution strategy is investigated by determining and analyzing key principles of the strategy. It is examined through a multiple case study and simulation. This research reveals that the in-transit distribution strategy is about considering goods that are being transported as a mobile inventory and actively dispatching goods to a destination, where there is a predicted demand before any customer orders are received. It can give major competitive advantages by offering rather short lead-times for customers without having to store products locally. This, in turn, gives lower warehousing costs, lower tied-up capital, a less interrupted manufacturing, and steady as well as continous production volumes. It is a workable solution for European manufactures competing in distant market. To be successful with this strategy, it takes good planning, working closely with customers, first-class market kowledge, and a supporting enterprise resource planning (ERP) system. Other highlighted requirements are low variation in demand and predictable distribution lead-time. Simulation study of one hypothetical product group verified case study findings, but we find it interesting that especially manufacturing output variance is very sensitive regarding the overall results. Also increasing average customer demand results in undesired outcomes.

Place, publisher, year, edition, pages
Springer London, 2010. 249-261 p.
National Category
Engineering and Technology
Research subject
Technology
Identifiers
URN: urn:nbn:se:his:diva-4571DOI: 10.1007/978-1-84996-525-5_17ISBN: 978-1-84996-524-8 ISBN: 978-1-84996-525-5 OAI: oai:DiVA.org:his-4571DiVA: diva2:388385
Conference
2nd Rapid Modelling Conference (RMC10), Neuchâtel, Switzerland, August 30 - September 1, 2010
Available from: 2011-01-17 Created: 2011-01-17 Last updated: 2015-01-22Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf