The document discusses the importance of careful planning in designing distribution networks, emphasizing their significant impact on supply chain efficiency and costs. It highlights the roles of storage centers and transportation systems and their necessity for manufacturers and online retailers like Amazon. Risks associated with inadequate network design include high costs, product damage, poor lead times, and availability issues, underscoring the need for experienced supply chain consulting.

1. Factors to
Consider before
Designing a
Distribution
Network
Bradley Berfield

2. Senior logistics professional Bradley Berfield possesses more than
two decades of experience in supply chain management. A proven
leader, Bradley (Brad) Berfield has diverse industry experience
encompassing transportation, import operations, and distribution
network designs.

3. Distribution network design can have a significant effect on the
supply chain of manufacturers and retailers and their bottom lines. A
distribution network comprises storage centers and transportation
systems interconnected to receive and deliver inventory.

4. For manufacturers, distribution networks are the intermediate step
between them and wholesalers. For online retailers such as Amazon,
distribution networks are the intermediate step that ensures
products reach consumers.

5. When companies do not consider all of the factors before they design
their distribution networks, they face big risks, including high
network costs, excessive product damage, poor lead times, high
investment costs, and product availability issues. This is why
consulting experienced supply chain professionals is crucial before
companies design or expand distribution networks.