December 2012
Intermediate to advanced
561 pages
22h 33m
English
Content preview from Logistics Management ,3rd Edition by Pearson
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74 • Logistics Management
under respective regions. These hubs will eliminate the need of having distribution centres located
in each state which is the practice followed by many fi rms. The advantages of hub strategy are:
• Reduction in operating costs
• Minimization of transportation cost
• Better control on inventory
• Improved customer service
Cobbling
This strategy works well with players who are not competitors but cater to the needs of similar
groups of users or customers and have a similar distribution channel. For example, FMCG products
manufactured by the companies such as HUL, J&J and Nestle can be cobbled together to reduce
wasteful ...
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