Companies ‘will move towards multi-location distribution networks’

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Challenges within supply chains have led to a switch to multi-location distribution networks, according to one industry expert.

Peter Ward, DP World London Gateway cargo supply chain commercial manager, explained that distribution networks need to be “more agile and flexible” as a result of changes in global sources.

Speaking at an agents briefing in Birmingham hosted by Jones Lang LaSalle, Mr Ward noted that the emergence of new and multiple channels look set to result in multiple stocking locations.

“In the UK it may prove optimal for a major distribution centre in the south to complement another operating in the Midlands,” he stated.

The expert added that the DP World London Gateway Port could save firms millions of pounds within their supply chains by enabling them to directly ship goods to London and the south-east.

Mr Ward’s comments come in the wake of new global research by IHS iSuppli, which found that electronic original equipment manufacturers are looking at ways of rationalising their supply chains by reducing the numbers of contractors they use in production.