Assessing the elements in a distribution model : a case study of a dairy producer

Abstract

High competition in the FMCG industry makes it critical to have a responsive distribution system. This case study-based research analysis less addresses demand dynamics, risk exposures, warehouse utilization, and sales returns at different supply chain actors' levels. It evaluates the dynamics of above variables with varying structures of distribution, which is less addressed in the literature. The General Trade operation of the ABC plc is the leading distribution channel, which typically receives 75% -80% of the total company's revenue. Before August 2017, the company had a similar experience to the typical sales distributor model. They have operated in a pure consignment agent model from then until today. The study compares the two eras in several areas and seeks to find the best suite operations for the business. The study uses case study methodology to deeply address the dynamics of the ABC plc's demand, risk, and reverse logistics. The data interpretations in this study were made using qualitative and quantitative data analysis techniques. The study analyzes demand dynamics, risk exposures, warehouse utilization, and sales returns at different levels of the supply chain. The study concludes by advising that the firm be upgraded to a hybrid model that offers benefits over the current consignment agent approach. It is preferable to choose a blend of both methods to boost the company's efficiency while also addressing its current distribution issues.