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In-transit distribution as a strategy in a global distribution system
University of Skövde, School of Technology and Society.
University of Skövde, The Virtual Systems Research Centre. University of Skövde, School of Technology and Society.
2011 (English)In: International Journal of Shipping and Transport Logistics, ISSN 1756-6517, E-ISSN 1756-6525, Vol. 3, no 2, 198-209 p.Article in journal (Refereed) Published
Abstract [en]

Distribution has become a key factor in today’s logistics system due to companies’ desires to achieve considerable economies of scale in production, achieved by focused factories, as well as customers’ demands for shorter lead-times and customer adapted products. The purpose of this research is to investigate if the in-transit distribution strategy may offer companies a competitive advantage and may be used as a complement to the centralised distribution strategy and/or the decentralised distribution strategy. This study shows that the in-transit distribution strategy can give major competitive advantages by offering rather short lead-times for customers without having to store products locally in warehouses. This, in turn, gives lower warehousing costs, lower tied-up capital, a less interrupted manufacturing, and steady and continuous production volumes. In order to be successful with this strategy, it takes good planning, working closely with customers, good market knowledge, and an enterprise resource planning (ERP) system that is able to support the strategy sufficiently. Among these factors, low variation in demand as well as manufacturing output is required, and furthermore distribution lead time needs to be predictable.

Place, publisher, year, edition, pages
InderScience Publishers, 2011. Vol. 3, no 2, 198-209 p.
Keyword [en]
global distribution, in-transit, Sweden, China, UK, chemical industry
National Category
Engineering and Technology
Research subject
Technology
Identifiers
URN: urn:nbn:se:his:diva-4875DOI: 10.1504/IJSTL.2011.039379ISI: 000289034500006Scopus ID: 2-s2.0-79953697127OAI: oai:DiVA.org:his-4875DiVA: diva2:414764
Available from: 2011-05-04 Created: 2011-05-04 Last updated: 2015-12-21Bibliographically 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