||Reduction of costs through improvement in packaging
and reduction of wastes. Benefits are derived by the distributors.
||Environmental costs are often externalized.
|Time / Flexibility
||Integrated supply chains. JIT and DTD provide
flexible and efficient physical distribution systems.
||Extended production, distribution and retailing
structures consuming more space, more energy and producing more
emissions (CO2, particulates, NOx, etc.).
||Increasing system-wide efficiency of the distribution
system through network changes (Hub-and-spoke structure).
||Concentration of environmental impacts next
to major hubs and along corridors. Pressure on local communities.
||Reliable and on-time distribution of freight
||Modes used, trucking and air transportation,
are the least environmentally efficient.
||Reducing the needs for private warehousing
||Inventory shifted in part to public roads (or
in containers), contributing to congestion and space consumption.
||Increased business opportunities and diversification
of the supply chains.
||Changes in physical distribution systems towards
higher levels of energy consumption.