Distribution Center LocationGrainger - Assignment Example

The company has expanded its supplies operations to Panama, China and Canada. Moreover, the company has over three thousand vendors and offer more than nine hundred thousand products. In addition, Ginger.Inc Company has over one point eight million customers across the globe. In order to attain competitive advantage over the other competitors, the company has establish efficient and effective distribution channels to ensure there are efficiency and effectiveness in delivery of their products to their customers (Duch, & Arenas, 2005).

In addition, the company has a well-designed website where customers who are in different parts of the world can have an easy access to the products offered by the company. For instance, a customer who is in China can just visit the Grainger. Inc website and order a product online. The company may deliver the product at the door step of the customer irrespective of the geographical barriers. This is possible because Grainger, Inc Company has well-established supply chain networks in all its distribution centres (In Ahn, 2014).

To run the supply chain efficiently Grainger and other organisations must address their problems as discussed below; Grainger must learn on how to eliminate the doubles cost of distribution by building a new centre for distributing its products in Los Angles. Based on the above calculations it can be scrutinized that the company is incurring the double cost, and it will be efficient to adopt the change. The company will be able to save the money. For example517, 99.567 dollars may be saved annually; the figure was obtained by finding the difference between the two options (Beamon,