The Role of Physical Distribution in Supply Chain Enterprise and the Accompanying Bottleneck Problems: A Review

Abstract

Physical distribution is the core component thatdetermines the general performance of supply chain administration because it is thelogistics platform that enables the entire supply chain organization to manage and optimize the movement of productswithin the value chain enterprise. However, there are bottleneck problems attributable to physical distribution that limits the general effectiveness of the value chain. Consequently, the literature appraisal aims to identify and synthesize into adocument the underlying bottleneck problems associated with physical distribution in the supply chain environmentto guide stakeholders in the industry and chart future research direction for effective physical distribution policies to further enhance the supply chain organization. Among the problems identified are, cost, ineffective information technology, transport problem, limited capacity, inventory, regulatory laws, and facility location. Other problems include poor infrastructure, inadequate technical ability, tax, and environmental factors. The identified problems can be used for value stream mapping of physical distribution to identify process improvement opportunities for a more efficient supply chain organization.