Evaluation and failure diagnostics of distribution network in a dairy supply chain (Case study: milk distribution company)

Subject Areas : Industrial Management

Mohammad Amin Khoei ¹ , Amin Jamili ²

1 - School of Industrial Eng., College of Engineering, University of Tehran, Iran
2 - Faculty member of Tehran University

Received: 2021-05-13 Accepted : 2022-04-10 Published : 2022-05-26

Keywords: Distribution network, FMCG, Troubleshooting, milk distribution network,

Abstract :

In today's competitive market, many experts believe that competition has shifted from the level of companies to the competition between their supply chains. Supply chain efficiency depends on several factors. The success of a distribution chain often depends on how the members of the chain perform their tasks in order to achieve common goals. Distributors, as one of the main members and connection between the manufacturer and customers, play a key role in the supply chain management. Besides, they are particular in collecting marketing information, reducing demand uncertainty, and improving customer satisfaction. In the dairy industry, for various reason such as the existence of various sensitivities, including rapid and high corruption rates, the role of supplier is more critical. Therefore, the purpose of this study is to evaluate and diagnose the milk distribution network of the dairy industry. In this regard, first using the SCOR model approach at three levels, the milk distribution network is evaluated. Then, the evaluation indicators of the distribution network and the complications of the study distribution network were identified. The most important complication identified in the milk distribution network was the distribution of milk close to their expiration date. In the next step, the causes of milk distribution network complications were identified and categorized, the most important of which, according to the AHP method, is the lack of a proper distribution network monitoring system and human errors in information transmission.

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