Framework for selection of distribution strategies

Abstract

When a company grows rapidly, the existing infrastructure of the supply chain system set up long ago, faces an increasing pressure to meet new challenges and needs to be restructured. A seasonal seed manufacturing company, such as Seed Corp, has only five months of manufacturing time in the Fall each year. Customers usually do not want the seed delivery until Spring. Such companies face a tremendous pressure to find space to store their products during the manufacturing peak season. Companies must search for good strategies to meet these challenges. This thesis assesses the framework for selection of distribution strategies, reviews the these strategies, and analyzes the benefits and challenges among them. This research analyzes trade-offs between centralized and decentralized distribution systems, as well as between service level and cost. The analysis focuses on the response time and total cost for four distribution options. We have chosen Seed Corp as a case study. As the result of the research, the thesis suggests distribution strategies to meet the company's supply chain challenges. Finally, we recommend the further areas that need to be explored.