Strategic Distribution Network Design Analysis: LGMT 683 Essay

This essay analyzes distribution network design, focusing on companies such as Wal-Mart, Whole Foods, and BOXED. It explores the strategic fit between competitive and supply chain strategies, examining how these companies have structured their distribution networks to enhance efficiency and customer satisfaction. The essay also selects key supply chain drivers and metrics, comparing the performance of these firms in areas like logistics, automation, and supply chain management. The analysis includes an examination of distribution centers, technologies employed, and strategic relationships with partners, providing insights into the factors that contribute to successful distribution network design. The essay references various sources to support its arguments and includes figures and diagrams to illustrate key concepts, making it a comprehensive study of distribution network design within the context of supply chain management.

Assignment Essay: Distribution Network Design
Module 2
LGMT 683 Supply Chain Management
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CONTENTS
DISTRIBUTION NETWORK DESIGN.........................................................................................1
REFERENCES................................................................................................................................4

DISTRIBUTION NETWORK DESIGN
Distribution network is a certain type of inter connectivity among warehouses,
manufacturing plants and different locations that any company establish to increase the ease
within its distribution services. The distribution network design of companies like Wal-Mart,
Whole foods and BOXED have suitable technology embedded frameworks to establish a strong
network for distribution processes.
Figure 1: Wal-Mart Distribution network Map USA
(Source: Wal-Mart Distribution Centre and Network, 2018)
Wal-Mart has about 158 distribution centers established by highly automated framework.
The network of distribution of Wal-Mart has extensive locations selected strategically to
facilitate its customers and other suppliers. It has different distribution centers segmented on the
basis of products among which some of them are operated by automated systems, voice picking
systems (Cath et.al. 2018). The networks of distribution centers have been segmented as full line
grocery distribution center, Perishables and Dry distribution center. The distribution network of
Wal-Mart has strong logistics and supply chain systems in U.S. The company inhibits the most
strategic platforms for its distribution networks automated material handling, on time delivery
and supply chain technologies.
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Figure 2: Distribution centers of Wal-Mart
(Source: Number of Wal-Mart Stores, 2019)
The distribution network for Whole Foods Company has built with the support of local as
well as global partners. The company has established strategic relationship with farmers or
producers to gain an amount of quality products (Campbell et.al. 2018). With almost 12 divisions
of headquarters, the company has various distributions as well as manufacturing centers for
different food products. Its distribution centers are operated with significant governance and
comprised of strategic purchasing policies.
Figure 3: Distribution channel of Whole Foods
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(Source: Marketing channels for consumer products. 2018)
The distribution network of company has been strengthened by direct corporation of
manufacturers for effective and real time deliveries and distribution services. With the
involvement of company like Amazon, the network of Whole Foods has expanded in terms of
distribution functions, facilities and channels.
Boxed being a wholesale retailer has strengthened its distribution networks by locating its
offices at five significant places. Its distribution channels have become successful by the help of
technologies such as pixel-based tracking systems and other distribution facilitators (Vedder,
Guynes & Parrish, 2019). Its fulfillment centers utilize robotics which has turned it as the second
largest retailer. The company has well established platform of Artificial Intelligence to compete
with the global suppliers such as Wal-Mart with the help of which it has gained strategic outlet to
perform real time distributions. The fulfillment centers are closely located with the automated
picking and packing technologies. Its centers do not have private offices but the in-house centers
are adequately embedded to perform strategic distributions and supplies.
The distribution networks, channels of all the include companies have set up with the
involvement of various technological tools, software to maintain desired flow of supply. The
distribution channels of Wal-Mart tend to produce one of the strongest networks due to the
strategic planning and investments and supply chain management systems.
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REFERENCES
Campbell, D., Sandino, T., Barnett, J., & Snively, C. (2018). Whole Foods Under Amazon.
Crawford, R. J., & Smith, N. C. (2019). Wal-Mart’s Sustainable Product Index. In Managing
Sustainable Business (pp. 35-62). Springer, Dordrecht.
Marketing channels for consumer products. (2018). [Online] Available Through:
<https://courses.lumenlearning.com/marketing-spring2016/chapter/putting-it-together-
place-distribution-channels/>.
Number of Wal-Mart Stores. (2019). [Online]. Available Through:
<https://www.scrapehero.com/number-of-walmart-stores-and-an-analysis-of-related-
store-data/>.
Vedder, R., Guynes, S., & Parrish, J. (2019). Botsourcing's impact on society. ACM SIGCAS
Computers and Society, 48(2), 10-13.
Wal-Mart Distribution Centre and Network. 2018. [Online] Available Through:
<http://www.mwpvl.com/html/walmart.html>.
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