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Developments in Distribution Networks - A framework for understanding variety

Introduction Substantial restructuring of distribution systems for industrial goods is under way (Narus & Andersson 1996, Pitt et al 1999 and Gadde 2000). Primarily restructuring occur owing to increasing service demands from customers and technological development making new strategic options available to suppliers. End-users increasingly ask for solutions that help them solve their particular problems (Anderson et al 1997). The problems of end-users are different – some require low-cost distribution arrangements while other demand complex (and thus more expensive) systems. Therefore, the on-going changes result in more differentiated distribution systems than traditionally has been the case. Technological development has contributed to shaping this variety. Narus & Anderson (1996) studied some successful distribution innovations introduced by US-firms. These solutions had been made possible through 'information technology and integrated logistics systems that can monitor the availability of products and services, process orders, and deliver products and services rapidly from distant locations to customer sites' (ibid. p. 114).