Companies Look to Distribution Networks to Help Cope with Economic Challenges, Study

Companies are looking to their distribution networks to help cope with recent economic challenges, according to a new study released by Saddle Creek Corp., a nationwide third-party logistics provider. The 2010 Distribution Network Trends Report explores current trends and changes in the design and management of distribution networks as the logistics industry weathers turbulent economic conditions.

The report draws upon online survey responses from more than 200 logistics industry decision makers with a diverse cross-response among market segments, including: manufacturers, retailers and distributors involved in executive management; supply chain, logistics, or distribution management; and operations management.

A significant number of companies are making changes to their supply chain distribution network design. In fact, two thirds of respondents confirmed that they had made changes and nearly half plan to make additional changes in the next 12 to 18 months.

Transportation and warehousing functions are significant drivers to enhancements in distribution networks. In the study, the top three areas of change for respondents overall included transportation-related changes (44.1 percent); warehouse size and/or configuration (33.8 percent); and consolidation of shipments from suppliers (24.8 percent).

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Credit: SupplyChainBrain.com