The Irish distribution operators and central distribution

Abstract

A number of changes have taken place in the supply chain in Ireland over the last number of years. This has mainly been driven by competitive advantage and globalisation of the major retailers. The arrival of Centralised Distribution by the major retailers has impacted heavily on both the supply chain and the distribution operators. Very little research has been carried out on the impact and effects this is having on transport and distributors. The outsourcing of logistics by the supply chain and the adoption of Supply Chain Management have brought logistical management to the foreground. As a result of this the growth in logistical providers has grown in the Irish market over since the 1990's. The arrival of major logistical companies into the Irish market has created a very competitive market place. The study is concentrated on fast moving consumer goods (FMCG) in particular the grocery retailers. Four major retailers now dominate the grocery market in Ireland. Three of the major retailers have implemented Central Distribution. The research approach taken in this study is triangulation method using a survey of the distribution operators in Ireland and structured interviews with major supply chain companies. The objective of the research is to understand and explore the relationships of these key three players within the industry and establish what impact the changes have resulted in. To try and establish what the future will hold with regard to supply reconfiguration. Will the distribution be able to face further change in the future?