Which strategy can improve distribution efficiency?

Implementing advanced logistics technology enhances distribution efficiency by streamlining operations, improving accuracy, and facilitating real-time data analysis. These technologies can include software solutions for inventory management, route optimization, and automated order processing. By using these tools, companies can reduce lead times, minimize errors, and enhance the overall speed of their distribution processes.

Advanced logistics technology also enables better communication and coordination throughout the supply chain. This can lead to more responsive supply chain management, allowing businesses to quickly adapt to changes in demand or unexpected disruptions. Efficient tracking and monitoring of shipments provide greater visibility and help in making informed decisions, contributing to overall improved efficiency in distribution practices.

In contrast, while increasing warehouse sizes might seem beneficial, it can lead to higher operational costs without necessarily improving efficiency. Reducing the number of distribution centers could streamline operations in some cases, but it may also increase delivery times and limit the service level for certain regions. Focusing solely on domestic markets can restrict a company's growth potential and may not align with global supply chain strategies that leverage international efficiencies.