Case Study: Innovations in Distribution Strategy - Assignment Example

Topic: CASE STUDY: INNOVATIONS IN DISTRIBUTION STRATEGY Lecturer: CASE STUDY: INNOVATIONS IN DISTRIBUTION STRATEGY Same day delivery has been in the system for a long time but its mode of operation and the characteristics that surround its usage seem to be changing by the day. Reading through the case, there are two major characteristics that can be seen to contribute to the success of same-day delivery. The first of these is the issue of market availability. Market availability directly answers the question of whether the location of warehousing facilities is important.

This is because there is evidence to suggest that companies with warehousing facilities located at the center of highly populated urban cities have succeeded due to market availability and the ease with which there can be distribution to customers (Perreault, Cannon & McCarthy, 2014). This also means that urban and rural market is an important factor because urban markets have likelihood of having more customers and multiple orders as against rural markets. The other characteristic that is seen about businesses that can succeed with same-day delivery has to do with funding.

This is because of the evidence that was gathered about the failure of Urbanfetch due to lack of funds (Chopra, 2013. With this said, it will be said that evidence of home delivery reducing any cost (Lam & Postle, 2006).There are some trade-offs that companies seeking to go into same-day delivery may have to bear. Trade-offs occur when a company has to loss one for of quality so as to get a retained gain for another quality. With this said the major trade-off that companies are likely to go through as a result of going into same-day delivery is the type of product that is offered.

Is this because product type serves as one important factor that affects the logistics business and for that matter same day delivery. Every often, products that are considered portable, durable and light weighted are more accommodating for courier services and thus same-day delivery (Perreault, Cannon & McCarthy, 2014). Such products cost the distributor less and thus make the whole business very cost efficient. The implication here is that if a company wants to go into same-day delivery and succeed in this business, it ought to consider losing out on its type of products if these are not the types that are easily conforming to this principle.

It is under such circumstance that the inventory mix can be made simple rather than complex for the company.Having said all the above, it will be stressed that there are factors that relate to innovation that have the likelihood of increasing success with same-day delivery. One such factor or innovative idea is the need to embark on the use of automated database. This should be an innovative technology that makes it possible for the company to account for all its customers and potential customers by way of their basic demographic information.

This is very important due to the important role that demographic information plays in formulating decisions about the market segment. Customer database also serves as the basis under which customized services can be delivered (Lam & Postle, 2006). This is because once the company has a fair idea about the demographics of its customers, it is able to take decision about the consumer behavior of these people. Consequently, focused services that serve the needs of a particular line of customers can be delivered.

At the same time, it will be possible to deliver focused service according to the location of a market segment. ReferenceLam, K. C. J., & Postle, R. (2006). Textile and apparel supply chain management in Hong Kong. International Journal of Clothing Science and Technology, 18(4), 265–277.Chopra, S. (2013). Cases: The future of same-day delivery: Same as the past? Watertown, MA: Harvard Business Publishing. Retrieved from https://cb.hbsp.harvard.edu/cb/pl/26533289/26533291/7f43a269c161feb57865f9c88bd8a753Perreault Jr., W. D.

, Cannon, J. P., & McCarthy, E. J. (2014). Basic marketing: A marketing strategy planning approach (19th ed.). New York, NY: McGraw-Hill.