Integrated cost management in the retail supply chain
Prof. Ann Vereecke
board member at Production and Operations Management Society, professor at Vlerick Business School.
Prof. Dr. Werner Bruggeman
Performance Management Expert at Delaware Performance Management (former B&M).
Companies serving the retail market can choose from several potential routes to their market. The product can be shipped to central distribution centers, from where they may go to satellite or regional distribution centers that serve local stores and final customers. Managers therefore need to decide which quantities of product to supply and route through which central and/or local distribution center to the which end customers, such that demand requirements can be met and total supply chain activity costs are minimized, taking into account resource constraints in the different phases of the supply chain. Quite a challenge!