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Article

A FRAMEWORK FOR MEASURING AND IMPROVING EFFICIENCY IN DISTRIBUTION CHANNELS

DOI: 10.7708/ijtte.2016.6(2).02


6 / 2 / 137-148 Pages

Author(s)

Milan Andrejić - University of Belgrade, Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, Serbia -

Milorad Kilibarda - University of Belgrade, Faculty of Transport and Traffic Engineering, Vojvode Stepe 305, 11000 Belgrade, Serbia -


Abstract

Distribution of products is largely conditioned by the efficiency of logistics processes. The efficient logistics processes provide loyal and satisfied customers, dominant position on the market and revenue. In this paper new approach for measuring and improving efficiency of logistics processes in distribution channel is proposed. Model based on the Principal Component Analysis – Data Envelopment Analysis approach evaluates efficiency of ordering, warehousing, packaging, inventory management and transport processes as well as distribution channel efficiency. Proposed approach also gives information about corrective actions for efficiency improvement. According results efficiency should be improved in several ways: information system improvement, failures decreasing, utilization increasing and output increasing. The results of proposed approach testing show great applicability of developed approach.


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Acknowledgements:

This paper was supported by the Ministry of Education, Science and Technological Development of the Republic of Serbia, through the project TR 36006.


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