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The third alternative dispatching location for customer and store orders is a supplier's DC.
Integrated DCs also offer advantages if they are the dispatching location in a click-and-collect concept.
We then discuss the concepts within two subsystems, namely the OC dispatching location (=source of distribution) and the OC point of customer reception (=destination of distribution).
Fashion retailers, however, do not at present use the store as a dispatching location, although this might be an option for very large fashion outlets.
Outlets as dispatching locations are relevant for home delivery as well as for the store pickup concept click-and-reserve.
Table 3 summarizes the findings on different dispatching locations and their impact on OC forward distribution design.
This builds the framework required for investigating RQ3 in relation to dispatching locations (Sect. 6.2) and destination concepts (Sect. 6.3) in forward distribution.
As the forward distribution concepts combine of different dispatching locations and destination concepts, we will discuss these areas in more detail in the following two subsections.
Three aggregate dimensions resulted: Excellence in OC distribution, forward distribution (containing a typology and related archetypes for OC dispatching locations and destination concepts), and backward distribution (containing a typology and associated OC return modes and processing locations).
The distribution process is much more complex as retailers need to orchestrate various dispatching locations and enable the shipment to various destination points, whereas for a single-channel retailer the physical flow of goods is more or less linear.
Outsourcing a part of the assortment handling to suppliers, therefore, can result in higher transportation costs, lower customer convenience or the challenge of consolidating order parts from different dispatching locations.
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CEO of Professional Science Editing for Scientists @ prosciediting.com