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Impacts of using distribution centers in outbound logistics of finished goods

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Author(s): Bárbara Coutinho Fernandes | Fernanda Heloise Galamba | Lucas Irineu Tosta | Renato da Silva Lima

Journal: Journal of Transport Literature
ISSN 2238-1031

Volume: 5;
Issue: 3;
Start page: 163;
Date: 2011;
Original page

Keywords: distribution centers | strategic decision | outbound logistics.

ABSTRACT
Seeking competitiveness, companies search for logistics strategies that improve their level of service without penalizing profits. In this context, the adoption of Distribution Centers (DC) appears as an efficient alternative in dealing with the trade-off between logistics costs and quality of service to their customers. This paper’s objective is to show how different DC models can help in the search for efficient logistics solutions for different products with different logistics characteristics. For this objective, the strategies adopted by three companies acting in different segments that use DC are analyzed, along with a fourth that presents a company which doesn’t have a DC but studies the viability of adopting one. The comparative analyses allowed for the conclusion that choices of type, location and necessary infrastructure for a DC are strategic decisions for companies and the first step in the choice for outbound logistics strategies of them.
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