The sector of warehousing and distribution services has always been essential to any corporate company carrying out business. As a matter of fact, the recent competitive nature of the market has compelled many companies to adopt effective strategies in the supply chain management process. The goals of these strategies is to come up with an efficient supply management system that features reduced costs, better services and enhanced performance.

 

Warehousing is indeed very significant to any company that is looking to gain a competitive advantage over its competitors. The logistics involved have however changed with time as recent market developments have proved to be very dynamic. The sector currently involves the use of the latest machinery and equipment to ensure that all inventory of a company is stored carefully.

 

This is especially the case where a company is dealing with delicate substances or perishables such as with food and beverage distribution. Another change in the sector has been a move to reduce waste in the form of damaged stock. This is mainly carried out through the adoption of a just in time strategy, which has become a very common global trend.

 

The major advantage of this strategy is that stock is kept to the minimum hence reducing holding costs. Furthermore there is a lower risk of damaged inventory. A company simply produces goods according to the available demand so as to keep stock at minimum levels.

 

Distribution on the other hand involves every aspect of getting the good or service to the customer. It is after distribution that cash flows are expected into the company as the product is made available to the market. In the case of services, distribution involves marketing and delivery of the respective service to the beneficiary.

 

There are three main distribution systems that are implemented in making products and services available to customers. North America freight companies like Canadian Distribution Services Ltd are a perfect example of companies that run an efficient distribution system. This is mainly because research is carried out to establish the best distribution channels for each particular product or service.

 

The first system is whereby a company carries out direct sales to the clients. A company may also adopt a wholesale distribution system whereby they sell the product to a merchant or middleman who then makes it available to customers. Alternatively, there is an option to adopt a distributorship sales system where a company provides the products to a large distributor with multiple wholesale accounts. The underlying fact is that each of the methods chosen has their own advantages and drawbacks.

 

 

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