7.2 : Delivery Networks

Information and merchandise flow are vital to distribution channels, each adding significant value to the delivery network.

Merchandise Flow refers to the movement of goods from manufacturers or suppliers to the end customers. By ensuring efficient and timely delivery of products, businesses can maintain high customer satisfaction levels and loyalty. For instance, Amazon's extensive distribution network allows it to offer same-day or next-day delivery options, adding value by providing convenience and speed to customers.

Information Flow encompasses all data exchanged between parties in the distribution channel, including order details, delivery status, inventory levels, and customer feedback. Adequate information flow allows businesses to forecast demand accurately, manage inventory efficiently, and respond quickly to customer needs. For example, Walmart uses real-time data sharing with suppliers to keep its shelves stocked and prevent overstocking or understocking.

Together, efficient merchandise and information flows can:

• Enhance Customer Satisfaction by ensuring product availability and timely delivery.
• Improve inventory management using real-time information, which helps businesses maintain optimal inventory levels and reduce storage costs.
• Strengthen Supplier Relationships by sharing accurate and timely data that fosters trust and collaboration.
• Optimizing operations through efficient flows can streamline operations, reduce costs, and improve profitability.