Multi - Channel Product Distribution And Coordination Strategy In E - Commerce Environment

With the rapidly development of E-commerce and Internet, more and more enterprises have set up their own online direct marketing platform.In the traditional commercial mode,manufacturers who have more than one links in the distribution system transfer their commodity to the end customers.But in the direct channel,it can speed up the transfer of products and services,it also can reduce costs and expand market.However, the competition of dual-channel supply chain will destroy the relationship of manufacture and retailer,leading to channel conflict.Therefore,to coordinate the dual-channel supply chain becomes necessary for enterprises to face and solve.In this paper,we examines optimal price decisions of dual-channel supply chain,and the strategy to coordinate the channel conflict.Firstly,we introduce the basic theory of dual-channel supply chain where the manufacturer is a Stackelberg leader and the retailer is a follower.We build a dual-channel supply chain model consisting of a manufacturer and a retailer in this paper.We propose three different stucture in different context.In this study,we focus on the strategic roles played by product distribution and coordinative structure with profit sharing in the dual-channel context.We analyse model to show that the brand differentiation is not a dominant distribution strategy to coordinate the channel conflict.The manufacturer employs a coorperative structure with profit sharing to maximize the entire distribution of channel profit and create a win-win channel strategy for each channel member.We examines optimal decisions and coordination models for a dual-channel supply chain when the two end competition market demands are simultaneously disrupted.Firstly,we developed the pricing and production decisions models without demand disruptions and propose a revenue sharing contract to coordinate the dual-channel supply chain. We compared the profits under normal case and disrupted case and quantified the information value of knowing demand disruptions. We proposed an improved revenue sharing contract to coordinate the dual-channel supply chain with demand disruptions.The results indicate that the adjusting prices and production quantity are the optimal decisions whether the demand disruptions case or normal case. We also find that the original revenue sharing contract is a special case of improved revenue sharing contract.