Exploring Superior Distribution Practices in the Paper Industry

Studies on effective distribution practices specific to the paper industry are largely non‐existent. Therefore, through our exploratory research, we first identify key elements of physical distribution in existing literature. Secondly, we empirically investigate the extent to which these elements influence non‐cost‐based (such as inventory turnover, order fulfillment etc.) measures of distribution performance in the paper industry. Using a sample of 95 National Paper Trade Association member firms, we create three performance groups (low, medium, and high). Then, we use analysis of variance (ANOVA) to test for any differences in the adoption of the physical distribution elements among these groups. Further, through partial least squares regression analysis, we attempt to identify those elements of physical distribution which may be most critical in explaining the differences in distribution performance. Our results provide general support for the importance of the key elements identified in this study.