Economizing in differentiated distribution networks: a transvection approach

Purpose – To provide a framework for understanding and analyzing economizing in differentiated distribution networks. Design/methodology/approach – The paper is conceptual and reviews and develops some of the concepts and ideas provided by Wroe Alderson. The developed framework is then used in combination with some principle empirical examples from the PC industry to illustrate how the framework can be used in order to understand economizing in differentiated distribution networks. The paper also brings forward some methodological concerns regarding the use of the transvection concept in an empirical setting. Findings – The paper concludes that by using a transvection approach three key concepts with regard to economizing in differentiated distribution networks can be identified; crossing points, sorting, and uniformity. These are interrelated and together they provide insight with respect to the logic of economizing in these kinds of networks. Originality/value – The paper brings forward some “old” Aldersonian concepts in a “modern” setting and shows how these concepts can be used to understand economizing in differentiated distribution networks. The transvection is reintroduced as a useful concept for analyzing distribution structures, and the author found, in particular, that the concept is highly useful for understanding today's modern distribution arrangements.