30
Facilities and handling
Lower
facility costs because of aggregation. Some saving on
handling
costs
if
manufacturer
can
manage
small
shipments
or ship from production line.
Information
Significant
investment
in
information
infrastructure
to
integrate manufacturer and retailer.
Service factor
Performance
Response time
High
response
time
of
between
one
to
twoweeks
because of
increased
distance
and two
stages
for
order
processing.
Response
time
may
vary
by
product, thus complicating
receiving.
Product variety
Easy to provide a very high level of variety.
Product availability
Easy
to
provide
a
high
level
of
product
availability
because
of aggregation at manufacturer.
Customer experience Good
in
terms of
home delivery but can suffer
it order
from
several manufacturers is sent as partial shipments.
Order visibility
More difficult but also
more
important
from a customer
service perspective.
Returnability
Expensive and difficult to implement.
2.
Manufacturer storage with direct shipping an in – transit merge
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