Emerging distribution systems in central and Eastern Europe

Abstract

PurposeThe purpose of the research is to shed light on the evolution of distribution structures and its consequent implications for supply chain management (SCM) in the context of the emerging markets of Central and Eastern Europe (CEE).Design/methodology/approachA structured literature review followed by two case studies, which combine qualitative and quantitative analysis. Mainly in‐depth interviews were used, with company sales data analysis in terms of variation and forecast accuracy.FindingsIt was found that CEE distribution structures are overlapping, and along complex traditional structures there exists a possibility for a more direct approach. This modern key‐account approach improves supply chain performance, mainly due to echelon elimination and information sharing. The case studies also illustrate that supply chain demand distortion originating practices create uncertainty in demand, even in the case of modern key accounts. The findings therefore suggest that general SCM approaches of the “West” are evident and appropriate also in the “East”.Research limitations/implicationsOwing to the limited number of case studies, this research is considered exploratory. The presented two case studies are essentially illustrative examples of the distribution operations of two international companies in CEE markets.Practical implicationsFor practitioners, the two case studies provide important insight on the nature of alternative distribution structures in CEE, and what the level of forecast accuracy and the demand fluctuation may be expected. It is proposed that the emerging opportunities for supply chain partnership development should be carefully reviewed.Originality/valueThe paper draws upon real‐life data from emerging CEE markets with an approach that is not commonly used in distribution and SCM studies on CEE.