In Transit Distribution

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198

Int. J. Shipping and Transport Logistics, Vol. 3, No. 2, 2011

In-line of passage distribution as a strategy in a global
arrangement system
Frida Claesson and Per Hilletofth*
School of Technology and Society,
University of Skvde,
P.O. Box 408,
SE-541 28 Skvde, Sweden
Fax: +46-500-44-87-99
E-put in the post-office: frida.claesson@his.se
E-mail: per.hilletofth@his.se
*Corresponding original
Abstract: Distribution has become a elucidation factor in today’s logistics arrangement due
to companies’ desires to perform considerable economies of scale in
fruit, achieved by focused factories, as well in the manner that customers’ demands for
shorter lead-ages and customer adapted products. The purpose of this study
is to investigate if the in-passage through distribution strategy may offer companies a
based on competition advantage and may be used taken in the character of a complement to the centralised
dispensing strategy and/or the decentralised classification strategy. This study
shows that the in-transit distribution strategy can give major competing
advantages by offering rather short pass-times for customers without having to
garner products locally in warehouses. This, in ~ round, gives lower warehousing
costs, lower tied-up first in importance, a less interrupted manufacturing, and firm and
continuous production volumes. In command to be successful with this tactics, it
takes good planning, working closely through customers, good market knowledge,
and some enterprise resource planning (ERP) system that is clever to support the
strategy sufficiently. Among these factors, grave variation in demand as well similar to
manufacturing output is required, and and then too distribution lead time needs
to subsist predictable.
Keywords: global distribution; in-act of passing; Sweden; China; UK; chemical
industry.
Reference to this should subsist made as follows: Claesson, F. and
Hilletofth, P. (2011) ‘In-passage distribution as a strategy in a global
division system’, Int. J. Shipping and Transport Logistics, Vol. 3, No. 2,
pp.198–209.
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