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A company that produces standardized products and sells them through retailers via a responsive transportation system has decided to expand its sales with an online store for customized products. Which of the following distribution strategies would be the most appropriate for the business-strategy change?
Correct Answer: C
The business strategy shift to selling customized products online necessitates a distribution strategy that balances efficiency and responsiveness. Here's the breakdown: * Current Setup: The company has a responsive transportation system serving retailers with standardized products. * Need for Customization: Expanding to online sales with customized products requires a different approach due to the variability and specific demands of online orders. * Centralized Distribution Center: * Serving Retailers: Maintaining a centralized distribution center for standardized products ensures consistency and efficiency in supplying retailers. * Direct Shipment from Factory: * Online Sales: Directly shipping customized products from the factory to customers is ideal * because it allows for better handling of unique orders and reduces the time from production to delivery. * Efficiency and Responsiveness: This combination allows the company to continue serving retailers efficiently while meeting the customization demands of online customers effectively. References * Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Planning, and Operation. Pearson. * Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2008). Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies. McGraw-Hill.