A national wholesale distributor of heating and air conditioning supplies was struggling to manage its complex supply chain and maintain high levels of customer service, which is a top priority. With over 20 decentralized sites spread across five states, communicating delivery needs between sales staff, professional drivers and each distribution center was creating challenges. Additionally, the distribution centers had no set routes, making planning difficult. Compounding the problems, Department of Transportation violations were impacting the distributor's ability to meet its customers' delivery needs and creating liability concerns. The distributor turned to Penske Logistics to help streamline and improve its deliveries to warehouses, houses, job sites, apartments and businesses. The partnership has allowed the distributor to improve customer service, reduce the size of its in-house fleet and tap into dedicated capacity. Utilizing Penske's expertise also enabled the distributor to focus on its core business rather than transportation concerns.
Nike Inc. Organizational Structure Characteristics (Analysis)
The term supply chain refers to the many links that a product goes through on the way to a customer. The efficiency of that supply chain is a function of the amount of cost and effort to move the product, and how quickly the product needs to be moved. One of the main challenges in the supply chain is the last mile - the final leg from the distribution center to the customer. Is it better to keep larger quantities in one central location, or distribute smaller quantities closer to the customer? This is one of the major factors in deciding between centralized and decentralized logistics.
This state-of-the-art centralized distribution facility in the center of Europe, employs more than 3, people, and allows Nike to serve a vast network of retailers and consumers not just on the continent, but across the world. The location of consolidation points depends on many factors that are not really appropriate to consider in a simple assignment such as this. Not every shipment is handled In a standard way through a single distribution pipeline: About a quarter of the volume of shipments Is shipped to customers directly. Prior to the start of a season, when work is at a peak, the workforce stands at some 2, operational staff. International logistics is complex, and different from localised logistics pipelines.