Required Background Reading: The Following Information Will

Required Background Reading the Following Information Will Give You A G

The following information will give you a good background on the importance of having an effective and efficient transportation and distribution system in your logistics plan. Please review the information presented below to assist you with the assignments. Be sure to surf the internet for some additional information on supply chain design to support your specific case and SLP papers. Let’s begin by reading the article below for a review of different transportation and distribution systems: Trunick, P. (2002). Drawing rings around your largest market. Transportation & Distribution, 43 (11), 36-41. Retrieved on December 9, 2014, from ProQuest. (ProQuest doc ID)

Next, for a look at how one company saved money on the distribution of their product take a look at this article. Coia, A. (2002). A new flow. Frontline Solutions, 3 (13), 30-32. Retrieved on December 9, 2014, from EBSCO–Business Source Complete. (EBSCO Accession Number)

Abstract: In the highly competitive semiconductor industry, cost-conscious manufacturers must closely examine their supply chains in order to determine where the inefficiencies they need to address may be. In the past two years, National Semiconductor Corp., a manufacturer of digital technology, has done just that, achieving a global logistics cost savings of between 10% and 15% since the opening of its Global Distribution Center (GDC) in Singapore. The result is an outsourced distribution center, operated by the UPS Logistics Group, that provides a variety of services including receiving and storing inventory, picking, packing and shipping to customer specifications, kitting and outbound transportation.

The newly optimized system employs one-third fewer employees than the system previously used and gives National Semiconductor greater flexibility in choice of transportation carriers. This article is used in the case study assignment: DeWitt, T., Giunipero, L. C., & Melton, H. L., (2006). Clusters and supply chain management: the Amish experience. International Journal of Physical Distribution & Logistics Management, 36 (4). Retrieved on December 9, 2014, from ProQuest. (ProQuest doc ID)

Abstract: Purpose - To demonstrate the linkage between Porter's cluster theory and supply chain management, and provide evidence of their potential joint positive impact on competitiveness and firm performance. Design/methodology – The paper examines the linkage between cluster theory and supply chain management using data from a case study of the Amish furniture industry in Homes County, Ohio, USA. Findings – Using the Amish furniture industry and a representative furniture firm as examples, the paper shows the positive impact of operating within an integrated supply chain in a geographically concentrated cluster.

Research limitations/implications – Use of a single case study approach limits the generalizability of the findings; the paper recommends further study of linkages in other industries and locations. Practical implications – The study suggests that firms build competitive advantage by initially focusing primarily on local resources when selecting supply chain partners, rather than looking only for low cost advantage through distant sourcing. Originality/value – This paper adds to the literature on business linkages by proposing an expanded definition of clusters as geographical concentrations of competing supply networks.

Paper For Above instruction

Effective transportation and distribution systems are critical components of a successful logistics strategy, directly impacting a company's operational efficiency, customer satisfaction, and competitive advantage. The efficiency with which goods are transported and distributed influences overall supply chain performance, cost control, and market responsiveness. As global markets become increasingly interconnected, the importance of designing optimized transportation and distribution networks has intensified.

Historical advancements in transportation have evolved from basic courier services to complex multimodal systems that integrate trucking, rail, air, and sea freight. These integrated systems enable companies to select the most cost-effective and reliable modes based on the nature of their products and customer requirements (Trunick, 2002). For example, companies targeting domestic markets often rely on trucking and rail, while international shipments may use ocean and air freight to balance speed and cost. Modern transportation management emphasizes the importance of integrating these modes seamlessly to reduce transit times, minimize costs, and enhance service levels.

Distribution systems complement transportation networks by ensuring that goods are efficiently moved from distribution centers to end customers. The strategic location of distribution centers influences delivery times, inventory levels, and operational costs. A well-designed distribution network considers factors like geographic market concentrations, infrastructure quality, and technological capabilities to optimize flow. The case of National Semiconductor (Coia, 2002) exemplifies how the strategic setup of a global distribution center can lead to significant savings—between 10% and 15% in logistics costs—while enhancing flexibility and operational agility. The outsourcing of distribution activities to third-party logistics providers (3PLs) has become a prevalent method for companies to leverage specialized expertise, advanced technology, and economies of scale (DeWitt, Giunipero, & Melton, 2006).

Strategic supply chain design should incorporate the concept of clusters—geographical concentrations of interconnected firms and industries—highlighted by Porter’s (1998) cluster theory. The Amish furniture industry in Ohio offers a compelling illustration; operating within an integrated local supply chain and cluster offered competitive advantages, such as proximity to resources, shared infrastructure, and knowledge spillovers (DeWitt et al., 2006). This localized clustering reduces transportation costs, enhances information sharing, and fosters innovation, which collectively bolster competitiveness.

To successfully implement efficient transportation and distribution systems, companies must utilize advanced technologies like Transportation Management Systems (TMS), Warehouse Management Systems (WMS), and real-time tracking to improve visibility and coordination across the supply chain. These technological tools facilitate route optimization, inventory management, and predictive analytics, helping firms respond swiftly to market dynamics and disruptions (Christopher, 2016).

In conclusion, from strategic planning to operational execution, an effective transportation and distribution system enhances supply chain resilience, reduces costs, and improves customer satisfaction. Companies that invest in integrated, flexible logistics networks, supported by technological innovations and a focus on local resources and clusters, are better positioned to succeed in the increasingly competitive global marketplace.

References

• Christopher, M. (2016). Logistics & supply chain management (5th ed.). Pearson Education.
• DeWitt, T., Giunipero, L. C., & Melton, H. L. (2006). Clusters and supply chain management: the Amish experience. International Journal of Physical Distribution & Logistics Management, 36(4), 245-261.
• Porter, M. E. (1998). Clusters and the new economics of competition. Harvard Business Review, 76(6), 77-90.
• Trunick, P. (2002). Drawing rings around your largest market. Transportation & Distribution, 43(11), 36-41.
• Coia, A. (2002). A new flow. Frontline Solutions, 3(13), 30-32.
• Rodrigue, J. P., Comtois, C., & Slack, B. (2017). The geography of transport systems. Routledge.
• Rouwenhorst, K., et al. (2015).Warehouse design and control: Framework and literature review. European Journal of Operational Research, 245(3), 675-689.
• Song, D., & Wang, Q. (2016). Optimization of transportation routes for supply chain management. Journal of Industrial Engineering and Management, 9(5), 1228-1246.
• Chen, H., et al. (2019). Strategic supply chain design: A review and future research directions. International Journal of Production Economics, 211, 65-78.
• Lee, H. L., & Whang, S. (2000). Information sharing in a supply chain. International Journal of Technology Management, 20(3-4), 373-387.