New port-centric distribution findings

University research shows that the distribution model can save toy suppliers money.
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Port-centric distribution – where the distribution centre is placed adjacent to the port, rather than somewhere else in the country – means that goods do not need to be transported elsewhere before they are shipped.

Import services has said that PCD can save toy suppliers money by addressing the retail supply chain challenges of time, cost and carbon emissions.

The logistics firm commissioned research from the University of Southampton, which found that 38 per cent of toy suppliers and 29 per cent of retailers thought the implementation of a PCD model could cut costs in the supply chain.

29 per cent of retailers said that the saving the environment was the most important advantage of a PCD model and 13 per cent of suppliers agreed.

Commenting on the survey, Mike Thomas, Client Services Director for Import Services said: "It is unsurprising that time and cost are identified as key challenges in the supply chain. However, it is more interesting to discover many of the retailers and their suppliers surveyed cited the Port-Centric model as a way of addressing these challenges.

He continued: "The disparity between retailers and suppliers in terms of their attitude towards the environment is noteworthy. This may be explained by the mounting pressures toy retailers face from environmentally conscious consumers and from policies nudging them to sharpen green credentials by reducing carbon emissions along their supply chains."

Import services has invited suppliers to view a synopsis of the port-centric study, read it here.

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