DESIGN OF DISTRIBUTION NETWORK: ANALYSIS OF DROP-SHIPPING PROCESS IN A CASE COMPANY

Abstract

Nowadays supply chain performance brings a major value for a business in order to sustain competitively in the market. However, distribution network design is presented as a significant factor in a supply chain design, because of its direct influence on supply chain performance. The distribution represents the actual flow of goods and services from production to the end customer and it is measured by quality, responsiveness, and availability of the goods. Therefore, this research is focused on the examination of distribution network design, particularly its role and importance. The study is limited to specific model: drop-shipping scenario. Case company is selected in order define drop-shipping design for, especially urgent and heavy deliveries. Drop-shipping process performance analysis is based on data collected by interviews in various departments. The approach aims to identify the current performance of the process, potential weaknesses and propose development suggestions for future continuous improvement. Major results of the thesis present five key investigated areas where problematic issues have been grounded in a case company drop-shipping model: communication, resources, technical side, organisation and complexity of the process. Improvement recommendations are provided accordingly in order to optimise the process in the future.