Customer pickup sites

The performance characteristics of a network with customer pickup sites and local retail storage are summarized in Table 4-6. The main advantage of a network with retail storage is that... 

Order visibihty is extremely important for customer pickups. The customer must be informed when the order has arrived, and the order should be easily identified once the customer arrives to pick it up. Such a system is hard to implement because it requires integration of several stages in the supply chain. Returns can potentially be handled at the pickup site, making it easier for customers. From a transportation perspective, return flows can be handled using the delivery trucks. 

The performance characteristics of manufacturer or distributor storage with consumer pickup sites are summarized in Table 4-5. The main advantages of a network with consumer pickup sites are that it can lower the dehvery cost and expand the set of products sold and customers served online. The major hurdle is the increased handling cost and complexity at the pickup site. Such a network is likely to be most effective if existing retail locations are used as pickup sites, because this type of network improves the economies from existing infrastructure. In particular, such a network can be effective for firms like Seven-Eleven Japan, Walmart, and W.W. Grainger, which have both a network of stores and an online business. Unfortunately, such... 

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