The paper "Analysis of the State of Logistics" is a great example of an assignment on management. There has been much evolution in the supply chain such that today people are lost and sandwiched between a warehouse and a distribution center. However, the literature on two existing categories of supply chain strategy that is, supply-focus and demand-focus strategies, broadly support cost focus and service focus that describe lean and agile ideas correspondingly. The two strategies endorse minimizing inventory in the supply chain and maximizing customer satisfaction. A warehouse is simply a facility put up to stock up supplies for a stretched period of time while a distribution center is a facility put up to offer value-adding services to goods that are stored up for fairly short periods of time.
Warehouses function in four main cycles that are, receiving, storing, picking, and shipping. Distribution centers operate in two main cycles; receiving and shipping. Some roles of a distribution center include cross-docking, consolidation, break-bulking, sorting, and reverse logistics. Information and communication technology development has facilitated the easy running of distribution centers. IntroductionThere has been much evolution in the supply chain such that today people are lost and sandwiched between a warehouse and a distribution center.
Both facilities play a key role in supply chain management since they are the nodes in the supply chain where customer orders are brought together and shipped out and are for that reason decisive to the achievement or breakdown of various supply chains (Andel, 2007). Amid this mix-up, this paper comes out to shed light on the distinction between a warehouse and a distribution center. Too, the paper surveys the contemporary role of distribution centers, for the most part regarding whether and how they fall in shape with current supply chain strategies. Background and Business EnvironmentIn ancient times, manufacturers and customers worked directly; the manufacturer produced the good and the customer bought it.
However, with increased demand, customers ensured they bought more to meet up their needs; customers had the inventory. With the development of retail stores, customers could access a variety of options and had a stationary point from where to purchase their products, creating a new part of the supply chain process; inventory moved from customers to retailers who had to ensure they had enough goods to sale.
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Baker, P., Designing distribution centers for agile supply chains, International Journal of Logistics: Research & Applications, 2006, 9(3): 207-221
Bonacich, E. and Wilson, J., Getting the Goods: Ports, Labor, and the Logistics Revolution, 2008, Cornell University Press, Ithaca, New York, USA
Buxey, G., Reconstructing inventory management theory, International Journal of Operations & Production Management, 2006, 26(9): 996- 1012
Fassoula, E.D., Transforming the supply chain, Journal of Manufacturing Technology Management, 2006, 17(6): 848-860
Hughes, R.A., One on one, Journal of Supply Chain Management, 2006, 42(2): 2-3
Lankford, W.M., Supply chain management and the Internet, Online Information Review, 2004, 28(4): 301-305
Twist, D.C., The impact of radio frequency identification on supply chain facilities, Journal of Facilities Management, 2005, 3(3): 226-239