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I need a summary of the paragraph on the picture below please. Distribution Logistics she aod alticaey n oshd vanoun gyterno to move funished goods
I need a summary of the paragraph on the picture below please.
Distribution Logistics she aod alticaey n oshd vanoun gyterno to move funished goods from the plant to the retalers s shopping basket. Most commonly, they used a warehouse ufacturers sent truckloads of goods to a retailer warehouse. At that storage and inventory management, including transportation, stocking, distribution system, in which man t, the retailers took over and merchandising of goods at their stores. Some U.S. retailers (and many in Europe, where space process whereby retailers timed and ted shipments from different manufacturers so that the products were unloaded on one end more of a constraint) experimented with cross docking, a was coordina of the receiving dock, immediately reconfigured into store shipments containing the products of various manufacturers, then reloaded onto the retailer's trucks and shipped to the stores. Cross docking eliminated the need for and costs involved in storage at the retailer warehouse. (See Exhibit 3 for graphic on cross-docking) Finally, in direct-store-delivery (DSD) systems, manufacturers bypassed the retafil warehouse altogether and delivered products directly to stores. In this case, manufacturers stocked shelves and automatically replenished the area, maintaining a pre-arranged minimum inventory level at each retail location. PepsiCo is primarily a DSD company; in North America, about 80% of its products were delivered directly to the store or shelf. PepsiCo used DSD for most of its beverage and Frito-Lay products while using warehouse delivery for Quaker products including Gatorade, although it was in the process of moving Gatorade to DSD starting with its small format customers (convenience stores and small retailers) in January 2011. Although DSD cost PepsiCo more in terms of labor and handling costs, managers believed that using DSD also increased volume sales for both PepsiCo and its retail partners. Greco explained, "We're expecting at least an 8% lift in sales volume by moving Gatorade to DSD in small format stores-2% to 3% would be from increased reach, 2% to 3% from reduction of stock-outs and increased merchandising, and another 2% to 3% from increased throughput. industry analysis has shown that the DSD system saved retailers time, labor costs, shipping and transportation costs, and inventory carrying costs-advantages that few of PepsiCo's competitors 0 would match across both the food and beverage businesses Step by Step Solution
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