Future path of Network distribution at Kellogg Company

        For the Kellogg Company the recommended design for the distribution network is not sustainable for a long time because there are some drawbacks in that design. So the design the Kellogg Company is using already for their distribution network is ideal and suits to their company. The Kellogg Company is American best multinational company in the field of food and cereals so their design of distribution is the key for their product distribution to the customers. The company has the best design for the distribution network because this design has increased the efficiency in distribution. The consumer can able to communicate with the retailers so because if the information cost is low (Watson, et al. 2012).

        The Kellogg Company has plan for the risk in the distribution network. By considering all the risks in the distribution network the Kellogg company has design this model for their company because through this model all the risks regarding the distribution system has been minimized. The risks can be lowered because of proper information transfer from the consumer to the manufacturer of products. The Kellogg Company is focusing on their product quality and also their service quality. They are focusing because they want to maintain the quality of their products. If the company is not focusing on the quality of their product so that they are unable to increase their revenues in future because of this reason the companies’ major focus on the product and service. In the services they want to improve their design for distribution network though innovation in this design, this means that when technology has been introduced in the design so this will able to improve the customer’s efficiency in great amount (Otto, Schoppengerd and Shariatmadari 2009).

        All the managers in the Kellogg Company have to the entrepreneurial initiative because their major goal is to improve their revenue in the future and also focus on improving the quality of their products. The lower management in the company has to give valuable suggestions to the top management so that they can able to take initiative in the future. Then after this the top management in the Kellogg Company has to work according to the Entrepreneurial suggestions from the lower management for the betterment of the company. For the future there are some problems that may generate due to lack of strategic plan. So for this the company has to make some strategies to remove the obstacles in the future (Otto, Schoppengerd and Shariatmadari 2009).

        This obstacle may exists in the form of distribution network design so for this the company has to change the structure for distribution network through introducing some innovation in the design. The Kellogg company has to plan for making the new strategies in their company and this can be done through cross functions. This means that like in the designing the new distribution network for their company they focus on mixing the two different designs for the distribution network so that they can easily able to increase their revenues in the future.

Reference  of Network distribution at Kellogg Company

Wordpress.com. (2018). Distributional Channelling By Kellogg’s. Retrieved from https://mpk732t12016clusterb.wordpress.com/2016/05/16/distributional-channelling-by-kelloggs/

Otto, Andreas, Franz Josef Schoppengerd, and Ramin Shariatmadari. 2009. Direct Store Delivery: Concepts, Applications and Instruments. Springer Science & Business Media.

Watson, Michael, Sara Lewis, Peter Cacioppi, and Jay Jayaraman. 2012. Supply Chain Network Design: Applying Optimization and Analytics to the Global Supply Chain. FT Press,.