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Beverage Industry Logistics Essay

2867 words - 11 pages

Designing the optimized distribution network for carbonated soft drink industry

Introduction

National and International businesses are becoming ever more dependent on logistics and supply chain management in order to keep pace with the demands of an increasingly global economy. This is why business leaders acknowledge that the supply chain can be a value creator and a source of competitive advantage.
Logistics management is defined according to The Council of Supply Chain Management Professionals (August, 2013) as “Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer’s requirements.”

For any firm to achieve competitive advantage not only good performance of its supply chain is crucial but its logistics is vital too. More recently, logistics has become more prominent and is recognized as a critical factor in competitive advantage (Bowersox and Closs, 1996; Bowersox and Daugherty, 1995; Christopher, 1992).
Reduction in cycle times and inventory levels are the ultimate goals of any supply chain. Increased customer responsiveness is also is an important factor that has also become a supply chain’s ultimate goal. However, reduction in cycle times and inventory levels and increase in customer responsiveness are not possible without an efficient and optimal distribution. Optimal distribution plays a considerable role in each of these areas and enhances firm’s performance. Distribution also represents a large amount of logistics cost. For any successful firm to remain competitive, a firm should continue struggle to reduce its overall logistics costs. Therefore, optimal distribution is an essential component of a well administered supply chain and firm can achieve it through proper planning.
An optimized distribution network is the result of integration of various logistics activities like purchasing, manufacturing, distribution and sales. The efficiency of supply chain can only be enhanced through an optimized distribution network. Therefore, optimizing distribution network is a major task in supply chain. Any firm cannot achieve efficiency if its distribution network is not optimally designed. A good supply chain includes a good logistics system. A key determinant of business performance nowadays is the role of the “logistics function” in ensuring the smooth flow of materials, products and information throughout a company’s supply chains(Sum et al., 2001).
So the objective of this research is:
• To explore different distribution network model and extract better optimized distribution network for carbonated soft drink industry
So related research questions are:
• How can we present minimal cost and optimal service level distribution network for carbonated soft drink industry?
So supportive research questions are:
 How...

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