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Distribution Operations Management

Distribution is the core of the supply chain. Increasing demand for faster delivery has significantly reduced lead time for replenishment. It was once acceptable to have turn times of 45 to 50 days. Value at eSpeed now demands turn times in 5 to 10 days. You need to look at your current inventory cycles and determine which method is best for your organization. The three main types of distribution:

Pool Distribution provides timely delivery of LTL shipments, with less handling, and at lower cost. When you have multiple shipments bound for a specific region, pool distribution becomes a simple, cost effective alternative to LTL.

Short/Long Term Distribution is similar to pool distribution with the main difference being the strong flexibility with ship dates. Instead of immediate delivery, your shipments can be held in service centers until you are ready to have them delivered- days, weeks, or even months later.

Combining pool, short term and long term distribution services can give you more opportunities to save money and provide better service. This is especially true when you have different customers ordering at different times, or a large customer who wants smaller shipments delivered more often.

By lowering your transportation costs and positioning your products for next day delivery to your customers, you are better able to compete with other suppliers located in their area. As part of our freight studies, TMG looks at your distribution patterns to recommend the best program for your company.

Benefits from better distribution management are:

• Enhanced customer service through quicker deliveries
• Overall reduced transportation costs
• Less shipments to manage through consolidation
• Reduced fixed labor and warehousing expenses
• Quick response to changing customer needs or seasonal shipping
• Decrease overall distribution costs by having less distribution points

Let us know how we can provide your company with a customized solution that is flexible enough to meet your customers' needs.

FUN FACTS

• 25 Air Cargo companies (dedicated and belly) together generate $ 21 billion in annual revenues.
• 30 Freight Rail companies together generate $ 71.2 billion in annual revenues
• 29 trucking companies together generate $ 57 billion in annual revenues.

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