From the course: Understanding Logistics

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Adding value through distribution

Adding value through distribution

From the course: Understanding Logistics

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Adding value through distribution

- A friend of mine recently retired from a large electronics distribution company. When I first met him several years ago, I remember asking him what exactly his company does. He said, "We make large boxes into small boxes." Pretty simple response to a rather complex question. And certainly, this is a primary function of distribution centers. For example, Walmart may buy a shipping container full of flat panel TVs from a producer in South Korea. At the distribution center, they break down that large shipment into smaller batches to be shipped to individual stores within the area based on demand from each store. And they work very hard to make this process as efficient as possible. One way to do this is to use the cross-docking method and Walmart has perfected this technique. A large truck pulls up to one side of the distribution center with pallets of TVs on board. Several smaller trucks are waiting on the other side to be…

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