ABSTRACT

The chapter on distribution systems provides an important link to the final consumer especially where products have to be delivered to an ever more heterogeneous and dispersed customer base, with a note on Amazon’s current approach. The chapter examines the main channels to market and then how companies typically organize their distribution to supply to these channels. The last mile in delivery and urban distribution systems are becoming more important and so these systems are discussed, including a note on how London is dealing with some of these issues. Technology such as radio frequency identification can help distribution become more effective, so this is also discussed. The chapter ends with a case study on an important development in distribution, namely horizontal logistics collaboration (or car-pooling for trucks). The case study examines Tri-Vizor, a new distribution player that coordinates this cooperation between competing manufacturers to reduce their distribution costs and their transport impacts of delivery.