By Christofer Kohn.
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Extra info for Centralisation of distribution systems and its environmental effects
Hence, the actual amount of emissions incurred by day-to-day transportations is in fact determined by decisions taken at higher organisational levels in a company and consequently there is also a need to add another perspective to the discussion on structural changes in distribution systems and their effect on the environment. This will be the focus of the subsequent part of the frame of reference, which will discuss how decisions can be taken at various levels in a company and the consequences owing to this.
G. comapny strategy, jurisdiction, technology, affecting the choices one can make. g. decisions on the structure of the distribution system or whether to outsource production or not. In turn tactical and operative decisions are linked to those choices one has to make further down in the logistics decision hierarchy. Also, the funnellike shape of the model helps illustrate that decisions at higher levels of the hierarchy are those that in effect on the one hand create opportunities, but on the other hand also set the boundaries for decisions taken at subsequent levels.
According to Rodrigue et al (2001) the traditional supply chain, where consumers visited large stores or shopping malls to buy their products, is being challenged by a somewhat different system. These new systems operate with large warehouses outside metropolitan areas and separate shipments are maid to online buyers, resulting in a disaggregated distribution system. However, in retrospect one can question the existence of these systems, since it has been proven that those companies that already had a functioning logistics concept are those who have ended up on top after the turbulence of the last 25 couple of years.
Centralisation of distribution systems and its environmental effects by Christofer Kohn.