The Research On Company A For Optimization Of Distribution Center

Flourish of E-commerce breaks through boundaries for retail business in recent years. Itwas facilitated by hub transportation service of some logistic companies that the radius ofonline shopping gradually extended to foreign countries. This trend not only brings globalproduct to all consumers with lower cost, better quality and more diversifications but alsoprovides all enterprises an unprecedented platform for seizing new market share withcompetitors who are originally in other countries. It means favorable conditions and excellentopportunities to entrepreneurs as well as a big challenge which they have never met.Company A is a Chinese online garment retailer who export local sourced product toexternal market around world through E-commerce platform. However high delivery costsseverely weaken the original advantage in material cost. Furthermore, extremely long deliverylead time constrain the improvement of customer’s value and shopping experience, especiallyin delivery speed and express expenses, in comparison with company A’s competitors.This essay will research in company A for its major problem by studying basicinformation and business status. By aggregating analysis of internal and external environment,setting up overseas distribution center would be a feasible and effective mean for CompanyA’s optimization for its delivery service level. Quality function deployment and Saaty’srelationship matrix is used to support the decision of electing a suitable solution for companyA to improve performance in distribution in order to achieve customer value. According toscoring and making comparison among options with the tools,3rdparty logistic service showsrelative strength from others proposals. Base on the preference, we further approach thesubject that related to storage-product selection strategy, material planning strategy andshortage risk control strategy from analysis the restriction by objective conditions.