Distribution
What is distribution and Why it is important?
Distribution is the crucial process of moving products from manufacturers to consumers.
The distribution phase is vital for minimizing the environmental impact of product transportation, reducing packaging waste, and promoting circular business models. By optimizing distribution processes and embracing sustainability in their operations, companies can contribute to a more circular and environmentally responsible economy.
In addition, it leverages digital technologies such as IoT, data analytics, and automation to optimize supply chain operations. This enhances real-time inventory management, demand forecasting, and logistics, resulting in improved efficiency, reduced costs, and enhanced customer satisfaction.
Circular strategies in the distribution phase
Industry 4.0 technologies applied in the distribution phase
Additive manufacturing
Additive manufacturing allows for on-demand, in-house production of products and parts, not only saving time but also eliminating the need for transportation routes and storage, thus reducing the environmental impacts associated with them.
Augmented and virtual reality
These technologies enable the creation of digital showrooms, allowing remote shopping and virtual product presentations, reducing the need for physical space and operational costs while promoting accessibility. This shift decreases the necessity for travel and transportation, further supporting sustainability efforts.
System Integration
Integrated Systems are vital for efficiency and energy savings in distribution. Technologies like BI and B2C systems optimize sustainability by reducing logistics’ carbon footprint and resource consumption.
Artificial Intelligence
AI improves distribution efficiency and environmental sustainability through intelligent route planning and logistics, utilizing real-time data and machine learning to reduce carbon emissions. Additionally, AI optimizes inventory management, minimizing waste and returns, promoting sustainability in warehouses and retail settings.
Distribution Examples
Natuzzi, an Italian furniture brand, has initiated what it terms as “a new era of sophisticated, personalized customer service” through the introduction of a virtual reality shopping experience.
Situated within its New York City Madison Avenue showroom, the brand’s Augmented Store allows customers to immerse themselves in a digitally recreated version of their own home using virtual reality and furnish it with Natuzzi furniture.
To engage with the environment, rearrange products, and modify patterns and colours, customers utilize Microsoft’s HoloLens 2 headset. The company foresees that the implementation of additional Augmented Stores, anticipated to be present in every Natuzzi shop, will result in a reduction of inventory needs in physical showrooms, consequently occupying less square footage.
Sustainability benefits:
- The Augmented Store allows customers to virtually explore and furnish their homes, potentially reducing the necessity for large physical showrooms. This may result in smaller retail spaces, thereby decreasing the overall physical footprint and energy consumption linked to maintaining and operating extensive showrooms.
- Virtual experiences can diminish the need for storing a vast array of physical furniture pieces in showrooms, leading to a decrease in resource use and waste associated with manufacturing and maintaining excess inventory.
Large data sets, in conjunction with IoT technologies, are playing an increasingly vital role in the entire textile industry. For instance, the firm DETEGO offers warehouse software based on RFID technology. Retailers can significantly improve their processes of receiving, picking, packing, and shipping in factories and/or distribution centers through this software. These steps are crucial components of a comprehensive RFID solution, providing full visibility throughout the supply chain.
Based on stock information, notifications are sent regarding goods that are out of stock and those in high demand. This information is then forwarded to the production plant, where it informs the next production plan. Large stockpiles are avoided because production can respond flexibly to demand, thanks to all the data collected from warehouses, traders, and customers.
With the help of IoT, the clothing industry can monitor the exact inventory of products ordered by customers. This technology also assists in identifying the need for modifications to the given products. After production completion, the product is transferred to carriers and then to the customer.
If a garment is marked with, for example, a digital passport or an RFID chip, it can be placed in a textile container equipped with an IoT sensor after use. These sensors monitor the container’s fill level and transmit the information to the administrator, who ensures that the container is emptied when necessary. This leads to more efficient collection and a reduction in transport costs, thereby closing the entire information chain about the product.
More information: https://www.detego.com/
Sustainability benefits:
- Reduction of production costs for products and material resources
- Decrease in energy and transport costs, which is related to lower emission).
Distribution centre connection
