In the past, businesses thought it was more effective if they carried out several parts of the supply
chain, like manufacturing and transportation, themselves. To meet requirements and provide
customer satisfaction, this meant deliveries taking place frequently and often without
consideration of impacts on the environment. An urgent order might result in a half-empty
vehicle making the delivery to a waiting customer. If this happened regularly it would be a waste
of time and fuel. Consumers and governments now look for more environmentally-friendly
methods of production and distribution systems. It is therefore more efficient and cost-effective
for Kellogg’s to specialise in the area in which it is expert – manufacturing. It does not have its
own distribution fleet but uses partners for its transport needs.