The business strategy shift to selling customized products online necessitates a distribution strategy that balances efficiency and responsiveness. Here's the breakdown:
* Current Setup: The company has a responsive transportation system serving retailers with standardized products.
* Need for Customization: Expanding to online sales with customized products requires a different approach due to the variability and specific demands of online orders.
* Centralized Distribution Center:
* Serving Retailers: Maintaining a centralized distribution center for standardized products ensures consistency and efficiency in supplying retailers.
* Direct Shipment from Factory:
* Online Sales: Directly shipping customized products from the factory to customers is ideal
* because it allows for better handling of unique orders and reduces the time from production to delivery.
* Efficiency and Responsiveness: This combination allows the company to continue serving retailers efficiently while meeting the customization demands of online customers effectively.
References
* Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation.
Pearson.
* Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain:
Concepts, Strategies, and Case Studies. McGraw-Hill.

Water transportation, particularly via ships, is generally the most cost-effective mode of long-distance transportation when measured in cost per ton-mile. Here's why:
* Economies of Scale: Ships can carry massive quantities of cargo, which reduces the cost per ton-mile compared to other modes of transport.
* Fuel Efficiency: Water transport is more fuel-efficient per ton-mile than air, truck, or rail, translating into lower costs.
* Infrastructure Costs: The natural waterways and ports, once established, do not require as much ongoing maintenance as roads or railways, further reducing costs.
* Long Distance Capability: Ships can travel long distances without the need for frequent stops or transfers, making them more economical for intercontinental shipments.
References:
Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson.
Rodrigue, J.-P., Comtois, C., & Slack, B. (2009). The Geography of Transport Systems. Routledge.

Attaching a fuel tank cap to a fuel tank door on a car is an example of poka-yoke, a Japanese term for
"mistake-proofing." This lean technique involves designing processes in such a way that errors are prevented or immediately detected and corrected. By ensuring the fuel tank cap is attached to the fuel tank door, the process is designed to prevent the cap from being lost or forgotten, thereby avoiding a potential error. Other lean techniques like Five Ss, Five whys, and Kaizen are important for continuous improvement and organizational efficiency but do not specifically relate to mistake-proofing as directly as poka-yoke.
:
Liker, J. K. (2004). The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer.
McGraw-Hill.
Shingo, S. (1986). Zero Quality Control: Source Inspection and the Poka-Yoke System. Productivity Press.