Naslov
Causal Analysis of Retail Distribution System Change from Direct Store Delivery to Centralized Distribution

Autori
Dujak, Davor

Izvornik
IBIMA Business Review (1947-3788) 2019 (2019), 2019; 1-14

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
distribution system ; centralized distribution ; direct store delivery ; causes for distribution system change

Sažetak
Distribution system significantly influences not only retailers’ and their suppliers’ cost structure, but also other connected processes (e.g. ordering, inventory replenishment) with direct consequences on product availability levels and consequently on end customer satisfaction. Therefore, changing of retail distribution system causes important process and organisation changes for both retailers and their suppliers and almost never occurs without significant obstacles. The goal of this paper is to provide profound overview of retailers’ and their suppliers’ reasons for changing of distribution model from direct store delivery to centralized distribution, and to highlight centralized distribution’s main benefits and downsides. Methods used for empirical research are semi-structured deep interviews with retailers and their suppliers, as well as causal mapping for purpose of representing cause and effect analysis of research problem. Results indicate high degree of retailers’ satisfaction with centralized distribution mainly due to lower costs, and increase in sell-out traffic. While suppliers also feel cost reduction, they are not satisfied with change of distribution system model mostly due to lost control over physical product flow. Nevertheless, suppliers’ main reason for accepting change is ensuring long-term cooperation with retailers – their main path to end customers.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA