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Sustainability in Supply Chain Management (Collection) by Steven M. Leon, Robert Palevich, Peter A. Soyka

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10. An Introduction to Distribution Resource Management

Container Delivery Management

Distribution Resource Management (DRM) is the technology used for global scouring. This is the buying and storing of imported goods for sales. Purchasing items from overseas causes long lead times, which can destroy a company’s order fill position. It may take two to three months to have the goods delivered and stocked in the warehouse. Replenishing out-of-stock items can take months! Customers won’t tolerate the wait, even if the items are priced 50% to 60% cheaper than the domestic brands.

Another issue is the requirement that companies purchase in container loads for each warehouse, potentially causing an overstock situation. To avoid this problem, accumulate ...

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