Gartner Research

Should Manufacturers Drop Everything to Support Retailer Drop-Ship Requests?

Published: 30 October 2017

ID: G00336393

Analyst(s): Simon Bailey , Thomas O'Connor

Summary

Retailers are asking manufacturers for drop ship to reduce rising logistics costs and working capital while offering a wider product range. Supply chain leaders focused on customer service in manufacturers and their retail counterparts should use this research to improve the collaborative outcome.

Table Of Contents
  • Key Challenges

Introduction

  • Drop Shipping Direct to the Consumer

Analysis

  • Build Capabilities to Support Drop Ship by Understanding the Critical Success Factors and Only Scaling Once They Are Proven
  • Structure the Drop-Ship Partnership to Ensure Benefits Are Shared Equally Between Retailer and Manufacturer by Conducting a Joint Value Creation Analysis
    • Retailers and Manufacturers Can Take a Variety of Approaches to Redressing Balance

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