Re-designing a distribution network in a supply chain: - A case study

Supply chain management has no doubt become companies´ strategy to enhance their competitiveness. Companies have made great efforts to redesign and reengineer their supply chains in order to improve their supply chain performance. Distribution network is a key driver of the overall profitability of a firm because it directly impacts both the supply chain cost and the customer experience. Good distribution network can help companies to achieve a variety of supply chain objectives ranging from low cost to high responsiveness. This paper reviews different models for distribution network design and different types of distribution network. We present a framework and approach for redesigning distribution network in a supply chain. Then we apply our framework in a company to redesign its distribution network. The new system helps the company to reduce operational cost at the same time to improve level of service. We report what benefits the company gained.