Reference no: EM131781000

The terms “Click and Collect”, “Clicks and Bricks”, and “Clicks and Mortar” refer to a selling/distribution model whereby a traditional retailer that has an established distribution network with DCs and stores will also allow for purchases to be made online and picked up by the customer at the store. Some items that can be ordered online may also be available in the stores themselves, but some items may be only available through online purchase (to be shipped by a DC to the store, and then picked up by the customer at the store).

Question: Please analyze this strategy in the context of the key factors (response time, inventory (safety stock), product availability and variety, transportation costs, and facility costs). Please explain what makes the strategy work (i.e. which of the key factors seem to matter most, in this context), and whether you see there as being any major concerns or risks (again, in terms of the key factors) for the long-term success of this model. Note that it would probably be beneficial to reference the primary alternative network designs (traditional retail, manufacturer-direct) in your discussion.

Advice:

Anybody could discuss the pros and cons of a click-and-collect retail model, but we should be able to go deeper after we have studied the key factors for distribution network design. You should be demonstrating a solid understanding of the key factors, the ability to apply them to a specific context, and the ability to put your thoughts into your own words.