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Companies perform their logistic operations in ways deemed most suitable and effective for their business settings. In this case, such activities cover a diverse range of activities from their acquisition of the materials, transportation, manufacturing, distribution, storage, and dissemination to various retail outlets for the accessibility of the targeted customers. They involve the use of the distribution strategies such as transshipping, cross-docking, and centralized management (Zanjirani, F. R., Rezapour, S., & Kardar, L. 2011). Each of the distribution strategies is used according to the amounts of the cost incurred by their variability and the extent of the satisfaction of customers in the end. The companies apply the strategy which is the most efficient regarding costs utilization, the required variability about the types and varieties of the products at hand and the maximum satisfaction of the customers in the receiving end. In the case scenario, there is the problem in which the fittest distribution strategy is to get chosen. It will then be applied in the distribution of the widgets across the company warehouses distributed throughout the United States of America. The strategy is also aimed at reducing the costs expended in the distribution of the widget products as well as reducing the variability since only one product is being handled, the widget product. Further, it should result in the optimum satisfaction of the customers because the aim of the company aims to attract as many customers as possible through their excellent contention. Based on the information available regarding the costs, variability and customer satisfaction, centralized management strategy is recommended for the company. It is because it reduces on the variability since the centralized management allows for the integration of the information flow between all facilities, allowing for the single point contact alongside one product, widgets, being dealt in hence cumulatively resulting in the reduction of the variability as is the current needs of the company. Also, the placement of the warehouses in various parts of the country allows for the sharing of information across all the networks during the business transactions more efficiently (Elliott, Caiden. 2017). It thus reduces costs as well as facilitating the optimum satisfaction of the customers being served at various distribution points.
The company can implement the recommendation by establishing a central manager responsible for coordinating all the activities carried out in various warehouses. It should also put in place a functional communication system between the central manager and all the mangers of the other warehouses. The distribution of the widgets should then be effected under the instructions of the central manager, with the warehouse managers being responsible for the liaison with the customers (Harrison, A., & Van, H. R. 2011). The logistical variability will get reduced, alongside efficiency in dealing with customers; who will get satisfied in the long run.
In completing the scenario, some elements were challenging in the process. The layout of the information network in the slides was not well arranged to boost ease in the access and reading of the information. There was a back and forth movement in scrolling which inconvenienced the smooth flow of reading the material. Additionally, the additional information factors into an effective distribution strategy by informing on the current state of the company as well as the gaps which have to be solved by the application of an appropriate distribution strategy. It also informs on different distribution strategies for the choice of the fittest one.
Elliott, Caiden. (2017). Logistics Management and Strategy. Larsen & Keller Educ.
Harrison, A., & Van, H. R. (2011). Logistics Management and Strategy. Old Tappan: Pearson Education UK.
Zanjirani, F. R., Rezapour, S., & Kardar, L. (2011). Logistics Operations and Management: Concepts and Models.
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