Direct to market or centralised distribution? A regional supply chain optimisation strategy

• Main Authors: ZELLER, Alan, CRAMA, Pascale, CHEAH, Sin Mei
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: Operations and Supply Chain Management; Logistics; Distribution strategy; Operations strategy; Inventory management; Resource management
• Online Access: https://ink.library.smu.edu.sg/cases_coll_all/506; https://cmp-shop.smu.edu.sg/products/direct-to-market-or-centralised-distribution-a-regional-supply-chain-optimisation-strategy?variant=42338364489770
• Institution: Singapore Management University

The case illustrates the benefits of distribution pooling for a company struggling with high inventory and write-off costs. It compares two distribution networks – one with direct shipments from a factory in Canada to markets in Southeast Asia, and the other using a regional distribution centre (RDC...