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Distribution Channel Structure and Integration: Contingency variables in the sawmill industry
Linnaeus University, Faculty of Science and Engineering, School of Engineering. (Skog och Trä ; Supply Chain Studies)
Linnaeus University, Faculty of Science and Engineering, School of Engineering. (Skog och Trä ; Supply Chain Studies)
2010 (English)In: / [ed] Arlbjörn, 2010Conference paper, Published paper (Refereed)
Abstract [en]

Purpose; The purpose of this paper is to identify and characterize structures and integration levels of distribution channels in the sawmill industry, as well as to discuss these characteristics and their association with different contingency variables.

Design / methodology / approach; Multiple case study

Findings: There is a variety of distribution channel structures and levels of integration in the sawmill industry: one extreme is small, one-unit firms delivering ex-works to export agents with unintegrated distribution channel processes and the other extreme is large, multi-unit firms with network flow structures delivering from their own stock on a market to clients with integrated distribution channel processes By studying these contingency variables, a pattern of sawmill categories emerges; the first category, in which production is focused, are the small single sawmills (with a cost leadership or focus strategy) which aim to deliver their products to independent actors ex-works; the sawmills which comply to this category do not consider logistics or IT as important, neither do they take integration into consideration. The second category consists of larger multi-unit sawmills with a downstream focus, which strive to integrate and control the distribution channel (in the most extreme cases acquire strategic actors) in order to achieve stable presence on strategic markets. Sawmills included in this category regard logistics and IT as important.

Research limitations / implications;

This research is an exploratory pre-study based on five case studies implicating a limited possibility to draw general conclusions.

Practical implications:

This paper illustrates situations in which the distribution channel requires to be focused to higher degree which is important for strategic decisions for the actors in the industry.

What is original/value of paper:

This paper illustrates the variety of channel structures and integration levels within a single industry, and connects the variation with a number of contingency variables.

Place, publisher, year, edition, pages
2010.
National Category
Transport Systems and Logistics
Research subject
Economy, Logistics
Identifiers
URN: urn:nbn:se:lnu:diva-6269OAI: oai:DiVA.org:lnu-6269DiVA, id: diva2:325025
Conference
Nofoma
Available from: 2010-06-17 Created: 2010-06-17 Last updated: 2016-09-26Bibliographically approved

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CiteExportLink to record
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