What constitutes a dynamic distribution network in the context of todays supply chain?
Fontanella: With the growth of global sourcing and worldwide markets, products are being made anywhere to be shipped anywhere. In Aberdeen Group’s recently completed study, “The Supply Chain Integration Benchmark Report,” we found that companies are seeking much more flexibility and agility to cope with this reality. It’s still very common for companies to detour their finished products thousands of miles away from the markets where they will ultimately be consumed, all in the name of control. We found, though, that some are building the capability to monitor and manage the flow of goods without having them pass through a central distribution point to match supply with demand. Instead, they are using techniques such as cross-docking and drop-shipping from supplier and service-provider locations to increase the velocity of their supply chains, allowing them the ability to delay commitment of inventory until real market demand becomes apparent. One company we interviewed now ships direct
