The Logistics of Direct-to-Consumer

The Logistics of Direct-to-Consumer

November 22, 2017

Article Title: Making eCommerce Logistics Fulfillment Channels Work in Today’s Direct-to-Consumer Market

Author of Article: Jagged Peak

Date of article: November 13, 2017

Source URL: http://www.supplychain247.com/article/making_logistics_work_in_todays_direct_to_consumer_market/news

This article describes the direct-to-consumer (D2C) market development.  Established companies will need to develop new D2C distribution channels without upsetting the retail distribution relationships.  Start-up firms must develop the logistics systems to meet growth in the D2C market.  All firms must develop customer relationships that add value in order to compete in the D2C marketplace.

Discussion Questions
1. In the D2C market, what are “virtual service relationship” service delivery considerations for an established firm?

Guidance: Review service delivery design considerations and customer relationship management. Students could then develop a service-blueprint to identify areas to add value to the customer relationship and to address service recovery systematically.

2. What are the logistics design considerations for a start-up firm entering the D2C market? How would international sales change the logistics planning?

Guidance: Students may develop a value stream map of a proposed lean supply chain for a start-up firm.  It may be helpful to have the students choose a new product or find a small firm in a Continue reading

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How the Red Cross Spells Relief

How the Red Cross Spells Relief

October 10, 2017

Article Title: Red Cross urges financial donations for Harvey victims

Authors of Article: George W. Rhodes

Date of article: September 1, 2017

Source URL: http://www.thesunchronicle.com/news/local_news/red-cross-urges-financial-donations-for-harvey-victims/article_f4868d98-9f6a-526b-98aa-8d56af8fcc57.html

This articles deals with the aftermath of Hurricane Harvey and how people can best help the victims.  It raises an interesting supply chain issue—donation of goods.  The Red Cross has urged that people donate money rather than physical goods.

From a supply chain perspective, donating money results in a more efficient supply chain, as the right items can be purchased and shipped immediately.  And it would avoid mounds of unnecessary donation items, such as winter coats and lingerie, which aren’t high on the priority list for Harvey’s victims.

But, at a personal level people may receive more satisfaction from donating goods.

Discussion Questions
1. What are the supply chain problems associated with the donation of goods for hurricane relief?

Guidance: Potential answers include the added cost of sorting, packing, and shipping donated good, plus the delay that these activities might add in getting goods to victims that need help immediately.  Additionally, some of the good may not be useable or of immediate need.

2. Should the Continue reading

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