INNOVATION IN DISTRIBUTION CHANNEL(S) & COST EFFICIENCY ON SMALL & MEDIUM ENTERPRISE SCALES’ PERFORMANCE: Firm performance

INNOVATION IN DISTRIBUTION CHANNEL(S) & COST EFFICIENCY ON SMALL & MEDIUM ENTERPRISE SCALES' PERFORMANCE: Firm performanceProduct and distribution scheduling is known as logistic activity relating to when & where, the goods to be produced & delivered. Therefore, Ballaou believes the activity could optimize income and source usage. Varimna found an integrated scheduling method involving material, inventory, production, & delivery activity found can improve efficiency. Other method using computer programming in the coordination for instance what it is called monolithic & hierarchical approach for coordination of the supply chain product flow indicating similar outcome that both approach be capable of finding good coordinated schedules for large size problems in a logical computation time that lead to efficiency. While related with integrated system, the study of using integrated scheduling system also be able to obtained operational performance in terms of efficiency in network. H4: Innovation in product & distribution scheduling system sharing will be positively associated with distribution performance in terms of efficiency.

Inventories appear be a significant fraction of business enterprise. Which is its assets. A range of inventory problems created for its mismanagement. Loss of productivity happens, the unwanted items do, a reduced level of customer commitment level exist, the accumulation of costly physical inventories also occur, if inventory are not managed properly. It is noted that the cost savings gathering from improved practices in inventory management are substantial. Therefore, innovation in inventory management and control are crucial for firms to omit its mismanagement that threatens a firm’s viability. Firms realize using a typical management method in inventory would free them to minimize inventory costs, avoid direct consequences, reduce unnecessary activities & keep the material resources enough Natarajan discusses with others & meet the conclusion that focusing on integrated strategic & other competitive factors-cost, delivery and quality would enhance performance. It is noted that firms would be likely to invent the product before delivering to their customers, hence, it is also estimated that innovation in inventory would be enhancing distribution performance efficiency. H5: Innovation in inventory will be positively associated with distribution performance in terms of efficiency.
The role of transportation system is crucial as it could provide better logistic efficiency, reduce operation cost, and promote service quality. It is surprising that Chang found transportation costs, in average, cover 6.5 % of market revenue and 44 % of logistics costs. Hence a good transportation operation in logistics system could increase business competitiveness, in line with this argument, Stefansson assured that a typical method of transportation coordination using three major elements : smart goods, smart vehicles and smart infrastructure could bring positive impact on supply chain performance. In contrast, poor coordination of the logistic system would lead to higher costs, longer delivery times, higher levels of loss and damage, & lowered customer service. H6 : Innovation in transportation will be positively associated with distribution performance in terms of efficiency.
Warehousing generates time utility for potential customer. As the movement of finished goods or/& material handling concentrated in and around the warehouse facilities, bottleneck in the warehouse can add more costs in transactions. To avoid such interruption, some technologies can be adopted and could improve distribution performance. Computerized both hardware & software in automation & simulation in warehousing and material handling could solve efficiency improvement in the operation. Evidence speaks that simulation program can be an alternative method for efficiency improvement in the warehousing and material handling system. Using technology of namely autonomous vehicle storage & retrieval systems -AVS/RS and web-based design conceptualization tool in warehouse permits firms to control costs, extend capacity, & improve their services to consumers. H7: Innovation in warehousing will be positively associated with distribution performance in terms of efficiency