Supply chain planning for water distribution in Central Asia

Abstract

PurposeThe role of business logistics for a water distribution company in Central Asia has become a major concern. As the marketing environment is getting more and more competitive, the company is forced to focus on the efficiency of its supply chain management operations both by improving customer service, increasing its profitability and productivity. The purpose of this paper is to report upon the designing of a responsive supply chain for water distribution in Central Asia.Design/methodology/approachA logistic plan to satisfy customer requirement for water distribution in a Central Asian city subject to satisfactory service levels both in the number of distribution centers (DCs) and truck delivery schedule is outlined in this paper. The logistics plan includes repositioning the DCs in relation to the customer location for efficient distribution. The problem is formulated as truck delivery schedule using a new algorithm where single distribution centre is converted into a multiple warehouse location problem. The problem is solved using WINQSB software. Further, the current DCs are appraised with the software and suggested possible new locations for convenience.FindingsThe application part of this case study consists of identifying water DCs in city limits. By developing improved distribution and logistics management, the study aims at economical operations, convenient zonal distributions, and responsive SCM characteristics. To this end, a spatial distribution plan and route sequencing solution is developed for water distribution.Originality/valueThe paper shows how to improve logistic network that results in cost savings, convenient zonal distributions, and responsive SCM operations. To this end, a spatial distribution plan and route sequencing is developed for water distribution.