Recently, several developments have led to the necessity for more control of the distribution process in terms of effectiveness and efficiency. Not only has the distribution element of total product costs increased significantly, but also distribution has become more important in fulfilling customer service. This paper presents a means to achieve better control of distribution by the use of a control system, using performance indicators comprising four hierarchical decision levels. Suggestions for making a suitable choice of performance indicators are presented.
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Amstel et al. (1996) studied this question.
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