Module 2 – Case

Module 2 – Case

Paper details

Module 2 – Case
Distribution Systems
Case Assignment
Welcome to the second case study for this course. After you have read the materials on the Module Two Background page, do some additional research on

your own and develop a 3-4 page paper discussing the following concepts:
How can concentrated clusters enhance the management of supply chains and improve overall firm performance? How might this management concept vary

between international firms and domestic firms? What are the negatives of the concentrated cluster theory?
Assignment Expectations
Submit your assignment for grading by the end of this module. You should have 3-4 pages of written text plus a cover sheet and references page. Use

at least 3 different sources of information and annotate your sources of information appropriately on your references page and within the text if

necessary. You will be assessed on how well you apply your understanding of various location strategies, particularly with respect to the cluster

theory. Research the many resources on the internet to make your points and be sure to differentiate between international and domestic situations.
Module 2 – Background
Distribution Systems
Required Readings
The following information will give you a good background on the importance of having an effective and efficient transportation and distribution

system in your logistics plan. Please review the information presented below to assist you with the assignments. Be sure to surf the internet for

some additional information on supply chain design to support your specific case and SLP papers.
First, access and read the article below for a review of different transportation and distribution systems:
Trunick, Perry, 2002, Drawing rings around your largest market. Transportation & Distribution, 43(11)36-41.
Next, for a look at how one company saved money on the distribution of their product take a look at this article.
Coia, Anthony, 2002, A new flow, Frontline Solutions, 3(13):30-32.
Abstract: In the highly competitive semiconductor industry, cost-conscious manufacturers must closely examine their supply chains in order to

determine where the inefficiencies they need to address may be. In the past two years, National Semiconductor Corp., a manufacturer of digital

technology, has done just that, achieving a global logistics cost savings of between 10% and 15% since the opening of its Global Distribution Center

(GDC) in Singapore. The result is an outsourced distribution center, operated by the UPS Logistics Group, that provides a variety of services

including receiving and storing inventory, picking, packing and shipping to customer specifications, kitting and outbound transportation. The newly

optimized system employs one-third fewer employees than the system previously used and gives National Semiconductor greater flexibility in choice of

transportation carriers.
This article is used in the case study assignment:
DeWitt, T., Giunipero, L. C., & Melton, H. L., (2006). Clusters and supply chain management: the Amish experience. International Journal of Physical

Distribution & Logistics Management. Bradford: 36(4).
Abstract: Purpose – To demonstrate the linkage between Porter’s cluster theory and supply chain management, and provide evidence of their potential

joint positive impact on competitiveness and firm performance. Design/methodology/approach – The paper examines the linkage between cluster theory

and supply chain management using data from a case study of the Amish furniture industry in Homes County, Ohio, USA. Findings – Using the Amish

furniture industry and a representative furniture firm as examples, the paper shows the positive impact of operating within an integrated supply

chain in a geographically concentrated cluster. Research limitations/implications – Use of a single case study approach limits the generalizability

of the findings; the paper recommends further study of linkages in other industries and locations. Practical implications – The study suggests that

firms build competitive advantage by initially focusing primarily on local resources when selecting supply chain partners, rather than looking only

for low cost advantage through distant sourcing. Originality/value – This paper adds to the literature on business linkages by proposing an expanded

definition of clusters as geographical concentrations of competing supply networks.

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