Distribution Strategies - Direct shipment distribution strategies
3 important questions on Distribution Strategies - Direct shipment distribution strategies
Why do direct shipment distribution strategies exist?
They exist to bypass warehouses and distribution centers.
What are the advantages of direct shipment distribution strategies?
- The retailer avoids the expenses of operating a distribution center
- Lead times are reduced
What are the disadvantages of direct shipment distribution strategies?
- Risk-pooling effects are negated because there is no central warehouse
- The manufacturer and distributor transportation costs increase because it must send smaller trucks to more locations
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