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Chapter 6 Distribution Systems Abstract Managing the internal processes of distribution systems require unique skills that are specific to the logistics industry. Although distribution centers have different characteristics and scales, their internal processes are fairly uniform. The structure of distribution system processes is shown in Figure 6.1. Figure 6.1—The process flow of a distribution system The distribution process begins with the arrival of goods from suppliers. The firm stocks goods in the warehouse and confirms the stock in inventory. To confirm the volume and quality of goods, the firm makes regular and irregular inventory checks. When customers place orders, the firm begins the picking process. If the picking area lacks inventory, the firm must find additional goods from upstream suppliers. Afterwards, the distribution fleet delivers the goods to customers. This chapter introduces each part of the system flow (Figure 6.1) and discusses the trends for distribution systems in Taiwan. 6.1 Stocking Process The stocking process entails receiving, unloading and unpacking goods. After the volume and quality of goods are checked, the goods are marked and categorized. Finally, the information is entered into the computer system. Warehouses employ a number of tools to unload cargo safely. Portable ramps are attached to trucks or trailers, flexible unloading tools called levelers are used, and lift gates are attached to the back of trucks to lower merchandise to the ground. Many steps of the distribution process such as stocking, picking and delivering, are carried out in the same place because of the lack of space in most Taiwan distribution centers. This causes problems since upstream and downstream firms cannot stock and deliver goods on time, often resulting in crowding. Improved coordination of this process is necessary to increase the efficiency of stocking and delivering. In January 1995, the Executive Yuan began promotion of the Asia-Pacific Regi