Direct delivery
| Direct delivery |
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| See also |
Direct delivery is way of transporting the goods when they are shipped directly from the supplier to the customer so that warehouse of seller is avoided[1]. Number of direct deliveries are growing as the consequence of increasing the direct marketing solutions, mainly by electronic media so that conventional sales model and retail channels have changed[2].
Why direct deliveries
The main assumption of direct delivery is that in the less points of supply chain product is processed, the less cost it generates. Direct deliveries might be done without touching any National Distribution Centers (NDCs), Regional Distribution Centers (RDCs), European Distrivution Centers (EDCs) or any combination of these Distribution Centers. Direct delivery is ofter caused by redesigning supply chain management. Moreover, adventages are[3][4][5][6][7]:
- responding to needs of different customers,
- meeting requirements of product service level,
- simplifying coordination,
- saving time,
- savnig expenses from transportation,
- minimalising quantity of stocks (and costs pararelly).
Challenges of direct deliveries
There might appear some disadventages such as no full trucks loading or many links between many warehouses from suppliers to many final destinations and back. To prevent that consolidation centers (hubs) or cross-docking might be used but here previous adventage of simplified coordination starts to be more complex again. From transporting point of view, lines of transport shoud be kept as short as possible and both ways the same so that geographical zone are divided and transport is optimased. If this is not balanced, the costs are increasing. In general, there should be considered below aspects when it comes to direct deliveries efficiency[8][9][10][11][12]:
- lead time,
- size of an order,
- efficiency of transport,
- transportation costs,
- service level agreements,
- handling costs,
- inventory costs.
Author: Weronika Burzawa
Footnotes
- ↑ Luszczak A., (2010), p.187
- ↑ OECD, (2009), p.31
- ↑ Notteboom T., Chen L. (2012), p.5
- ↑ Luszczak A., (2010), p.187
- ↑ Ballebye O. H., Möller B. A., Wahl J., Jensen K., Nygård A., Basalisco B. (2016), p.34
- ↑ O’Byrne R. (2011), p.51
- ↑ Zijm H., Klumpp M., Regattieri A., Heragu S. (2018), p. 234-237
- ↑ Notteboom T., Chen L. (2012), p.5
- ↑ Luszczak A., (2010), p.187
- ↑ Ballebye O. H., Möller B. A., Wahl J., Jensen K., Nygård A., Basalisco B. (2016), p.34
- ↑ O’Byrne R. (2011), p.51
- ↑ Zijm H., Klumpp M., Regattieri A., Heragu S. (2018), p. 234-237
References
- Ballebye O. H., Möller B. A., Wahl J., Jensen K., Nygård A., Basalisco B. (2016), Principles of e-commerce delivery prices, Copenhagen Economics, Denmark
- Luszczak A., (2010),Using Microsoft Dynamics AX 2009. Online plus, Springer Science & Business Media, Germany
- Notteboom T., Chen L. (2012) Determinants For Assigning Value-added Logistics Services To Logistics Centers Within A Supply Chain Configuration, in "Journal of international logistics and trade" Volume 10, Number 1
- O’Byrne R. (2011) Supply Chain Secrets, Global Publishing Group, Australia
- OECD, (2009), Delivering the Goods 21st Century Challenges to Urban Goods Transport: 21st Century Challenges to Urban Goods Transport, OECD Publishing, France
- Zijm H., Klumpp M., Regattieri A., Heragu S. (2018), Operations, Logistics and Supply Chain Management. Lecture Notes in Logistics, Springer, Switzerland
