Performance Improvement at Distribution Stage on Value Chain/Knowledge Management Basis

How to improve the performance of supply chain at distribution stage is discussed from the point of view of value chain and knowledge management. In view of the idea from activitybased costing/management, the distribution stage is broken down into several levels and sublevels. Then, the benchmarking method is introduced to improve the performance at distribution stage through a series of measures to be taken, i.e., eliminating the process in which no value is added, turning the lowefficiency process to advantage, creating new valueadded process, making much of the psychology of customers and maximizing delivered value to customers. Such an improving process shall be carried out as long as possible. A concept of "Lean Distribution" is therefore put forward to adapt to the increasingly developmental trend featured with individual demand.