Explain the Following Distribution Network Designs That May Be Used to Move Products from Factory to Customer: Manufacturer Storage with Direct Shipping, Distributor Storage with Carrier Delivery, Manufacturer/
Question: Explain the following distribution network designs that may be used to move products from factory to customer: manufacturer storage with direct shipping, distributor storage with carrier delivery, manufacturer/ distributor storage with customer pickup, and retail storage with customer pickup. Manufacturer storage with direct shipping: This distribution methodology is undertaken when consumers place an order, which then gets accepted by the manufacturer. Once the order has been completed, the manufacturer ships the merchandise direct, circumventing the retailer. This practice benefits the manufacturer because of the centralisation of inventory. Furthermore, this process allows the manufacturer to accumulate all customer demands across each retailer. Pros – This process enables a good customer experience due to a fast turnaround to the market. Additionally, this approach also produces low inventory and facility costs with high level of variety and product availability. Cons -‐ Weaknesses that lay within this method of distribution consist of high transportation costs not to mention a weighty financial investment for a specified information structures. Without this, tracking orders and handling potential returns can become