LOG502 MoD 2 Case Assign Distribution Systems - Essay Example

Generally, these groups of institutions either industries and businesses sometimes are direct competitors. However, they often operate in corresponding manner. In simple terms, the concentrated clusters comprise more than a single classification of industry (Ashman, 2008). Generally, concentrate clusters management concept tends to improve an organization’s performance by developing relationships between the customer and the supplier. The fundamental aspect of supply chain management concepts tend to utilize the concentrated clusters concept in order to utilize supplier’s clusters advantage because the clusters are generally connected to businesses (Bresnahan, 2004).

They are also companied within similar operating industry of specific firms. Additionally, concentrated clusters play a significant role in enhancing management of supply chains by generally allowing the organization to get familiar with its customer’s specific needs (Ashman, 2008). By doing this, concentrated clusters remain an important aspect in improving the company’s performance. In most cases, supply clusters creation in the organization always seeks to combine producer’s activities, organizational suppliers and transporters together.

In most cases, the aspect of amalgamation will give the organizational participants an opportunity to effectively coordinate and portray unity when it comes to business ventures in the organization. Alternatively, concentrated clusters enhance the supply management chains by attaining the trust within the industry (Bresnahan, 2004). Generally, concentrated clusters concepts helps improving organizational performances by improving customer satisfaction and through the reduction of overall costs.

Alternatively, concentrated clusters concept gives organizations an opportunity to promote mutual commitments atmosphere and business environment interdependence (Bosch, 1997). Concentrated clusters