What are the advantages of distribution network design "distributor storage with carrier delivery"?

• Transportation costs are somewhat lower for distributor storage compared to manufacturer storage because an economic mode of transportation (e.g. TL) can be employed for inbound shipments to the warehouse, which is closer to the customer.
•  Unlike manufacturer storage where multiple shipments may need to go out for a single customer order with multiple items, distributor storage allows outbound orders to the customer to be bundled into a single shipment further reducing transportation cost. Transportation savings from distributor storage relative to manufacturer storage increase for faster moving items. 
• The information infrastructure needed with distributor storage is significantly less complex than that needed with manufacturer storage.
•  Visibility between the distributor warehouse and manufacturer can be achieved at a much lower cost than real time visibility between the customer and manufacturer. 
• Response time with distributor storage is better than with manufacturer storage because distributor warehouses are, on average, closer to customers and the entire order is aggregated at the warehouse when shipped.
•  Customer convenience is high with distributor storage because a single shipment reaches the customer in response to an order.
•  Order visibility becomes easier than with manufacturer storage because there is a single shipment from the warehouse to the customer and only one stage of the supply chain is directly involved in filling the customer order. 
•  Returnability is better than with manufacturer storage because all returns can be processed at the warehouse itself. The customer also has to return only one package even if the items are from several manufacturers.
  

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