The Integration of Distribution Systems and Its Spatial Arrangement by Leading Chain Stores in the Chukyo District

This study aims to make a comparative analysis on distribution systems of the chain stores. Two lead-ing chain stores in the Chukyo district were selected for a case study: chain A, a General Merchandis-ing Store (GMS); and chain B, a Supermarket (SM) specialized in food. The focal point of the analy-sis was on the integration of distribution systems and its spatial arrangement. This study first investi-gated the distribution channels of commodities from wholesalers to chain stores and analyzed the inte-gration of distribution systems. Then, the spatial arrangement of the distribution system was exam-ined from three viewpoints: the location of the distribution center; the delivery system; and the com-bination of production, distribution, and sales. (1) Chain A (GMS)<br> Clothes are brought to the distribution center before delivering to each chain A's shop. Commodi-ties other than clothes are delivered directly to each shop by wholesalers. Clothes wholesalers are nu-merous and spread throughout the country, so the center is indispensable to maintain delivery sched-ules. Thus, chain A has its own distribution center which handles only clothes and operates its own de-livery system.<br> This study also investigated the spatial arrangement of the wholesaler C delivery system, which cov-ers the entire Chukyo district and supplies food commodities to chain A's shops. Wholesaler C has been successively establishing distribution centers as chain A's shop network enlarges. Wholesaler C has four distribution centers and each is responsible for some chain A shops (Fig. 3). This arrange-ment of centers therefore enables wholesaler C to maintain the lead times that chain A requires.<br> Chain A is the main GMS chain in the Chukyo district and is the most important client of whole-saler C. Thus wholesaler C gives priority of deliveries to chain A's shops.<br> (2) Chain B (SM)<br> Chain B has its own two distribution centers (Fig. 5), from which all types of commodities are deliv-ered to its subordinate shops. This distribution system therefore enables chain B to deliver small-lot commodities very frequently and to reduce the inventory stock of shops. Chain B delivers commodi-ties to its shops every day.<br> After chain B introduced the system of regular lump delivery (teiji-ikkatsu-haiso, Fig. 4) in 1985, it has been able to deliver all types of commodities to all of its shops just in time and to arrange deliv-ery times in accordance with the time of sales. Chain B has its own food factory, in which private brand (PB) commodities are produced. Thus chain B has a combined system for production, distribu-tion, and sales.<br> (3) Comparison and conclusions<br> While the delivery of commodities to chain A is basically managed by wholesalers, chain B oper-ates its own distribution system. Chain A is a giant GMS chain store in the Chukyo district, and there-fore wholesalers have a high regard for it. This situation allows for on-time delivery of commodities to chain A's shops. However, chain A has its own distribution center for clothing, because clothing wholesalers are very scattered. On the other hand, the stock rooms of chain B's shops are smaller than those of chain A, so it must integrate many distribution systems in order to deal with small-lot commodities.<br> Consequently, a chain store must integrate many distribution channels, when the stocking zone is lar-ger, deliveries are more frequent and the lot size of commodities is smaller. Today, when competition is heating up in the field of chain stores, the integration of distribution channels is important for their prosperity.