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?

Question

Quizplus · Accepted Answer

A centralized distribution center can handle both retail and online sales, however, customized products may require a more efficient and direct shipment process. Direct shipment from the factory to online customers can minimize transportation costs and delivery time for customized products. Local distribution centers may not be efficient for customized products, and cross-docking facilities may not be equipped to handle the production and customization process. Transshipment arrangements may also add unnecessary transportation costs and time for online orders. Therefore, a centralized distribution center serving retailers and direct shipment from the factory serving online sales is the most appropriate option.

A Company That Produces Standardized Products and Sells Them Through