Bypassing the Distribution Center
By Neelam Singh and G. Ganapathiraman
Keywords: DC Bypass, Descartes, Inventory in Motion, Floating Warehouse, Bakers.
The offshoot of tremendous growth in offshoring is that supply chains are getting more complicated; sourcing products overseas leads to longer lead times and escalating inventory costs. Thus, manufacturers and retailers that source in Europe are looking for an efficient solution to these problems. One way to do this is to bypass the traditional distribution center (DC) so that the retailer or manufacturer ships the product directly to the retail store. In its simplest form, "DC bypass" takes one link out of the supply chain. This is a simple idea, but requires effort and discipline to accomplish. A basic requirement of a DC bypass is to have value-added supply chain practices - like printing or labeling - take place at or near the manufacturer's facility.
This Insight showcases how "Bakers," a specialty footwear retailer uses the DC bypass strategy to its benefit.
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