ABSTRACT
Warehousing and distribution center operations are the pivot points for product and information flows between sources of supply and customers. To achieve operational excellence, organizations must have the capability to execute their distribution operations efficiently and effectively. Such a capability can meet customer needs and supply chain requirements, while minimizing costs and maximizing return on capital. However, too many organizations assume that distribution operations designed for the early 1990s are still adequate. Some believe that outsourcing means they also outsource their risk to a third party. Others are ignoring the business reality of extended supply chain networks, where collaboration is changing the role of some distribution operations and placing new requirements and performance expectations on others.
