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Author
Alain Beerens
Published
May 2008
Summary
Over the last fifteen years, European distribution structures have been evolving as companies pursue opportunities provided by both EU harmonization legislation and IT technology advancements; i.e., company-wide ERP, VMI & collaborative networking transparency, etc.
This begs the question as to whether standard but distinct distribution strategies (number and location of warehouses) exist for the different sectors such as electronics, FMCG, chemical, pharma, commodities, etc. In order to determine if there are patterns within sectors, we should approach our analysis using the following considerations:
- What are the main cost drivers when defining a distribution strategy?
- What are the main product-, and market aspects determining the distribution requirements?
- What is the best distribution strategy to comply with these distribution requirements?
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