Logistics, Distribution and Omnichannel Strategy

Introduction

Logistics is the coordinated movement and storage of products, information and related services from the point of origin to the point of consumption. Distribution is the design and operation of the network through which products reach customers. In contemporary supply chains, these activities are no longer limited to transporting finished goods from a factory to a store. Customers may order through a website, mobile application, marketplace, social-media channel, call centre or physical shop, and they increasingly expect accurate availability, rapid delivery, flexible collection and simple returns.

Omnichannel strategy responds to this environment by treating channels as an integrated fulfilment system rather than as independent sales pipelines. The central managerial challenge is to provide customer responsiveness without allowing transportation, inventory, warehousing and returns costs to become economically unsustainable. This requires network design, segmentation, technology-enabled visibility, disciplined performance measurement and carefully governed logistics partnerships.

Learning Objectives

By the end of this chapter, the learner should be able to:

1. Evaluate the economic and operational characteristics of major transportation modes.
2. Design and compare warehousing and distribution structures.
3. Explain the role of cross-docking, fulfilment centres and last-mile delivery.
4. Develop an omnichannel fulfilment strategy that balances cost, speed and customer experience.
5. Analyse reverse logistics and circular-flow requirements.
6. Evaluate 3PL and 4PL partnerships, including governance and risk.
7. Apply logistics performance measures and total-cost reasoning to managerial decisions.

1. Logistics Strategy as a Competitive Capability

A logistics strategy translates the customer value proposition into physical-flow requirements. A premium fashion retailer may compete through rapid product availability and convenient returns; a commodity manufacturer may compete through low delivered cost and reliable full-load transportation. The appropriate logistics design therefore depends on product characteristics, demand uncertainty, order density, geography, service expectations and regulatory conditions.

A useful distinction is between efficiency and responsiveness. Efficiency seeks low cost per unit, high asset utilisation and stable processes. Responsiveness seeks short lead times, flexibility and the ability to accommodate changing demand. These objectives may conflict. For example, consolidating orders into full truckloads can reduce freight cost but increase delivery time. Holding inventory near customers can improve service but increase facility and inventory costs.

Logistics decisions operate at three levels:

A sound strategy aligns all three levels. A strategically well-located warehouse will not deliver value if operational order-release rules create congestion, and a sophisticated routing system cannot compensate for an unsuitable network structure.

2. Transportation Modes and Modal Choice

Transportation is a service system with four fundamental outputs: place utility, time utility, reliability and shipment integrity. Mode selection should not be based solely on the quoted freight rate. The relevant decision is the total delivered cost and the service consequences of the choice.

2.1 Principal transportation modes

Road provides extensive geographic coverage and door-to-door flexibility. It is particularly valuable for short and medium distances, regional distribution and final delivery. Limitations include congestion, driver shortages, fuel-price volatility, emissions and exposure to road conditions.

Rail is efficient for high-volume, relatively predictable flows over long inland distances. It generally offers lower energy use per tonne-kilometre than road, but it is less flexible and normally requires road drayage at both ends.

Water has very low unit cost for heavy or bulky international and domestic cargo. Its disadvantages are long transit time, port dependence, weather exposure and the need for intermodal transfers.

Air offers the shortest transit time and is appropriate for high-value, urgent or perishable products. Freight rates, capacity constraints and environmental impacts are significant limitations.

Pipeline supports continuous movement of liquids and gases. It has high fixed investment, limited product flexibility and strong dependence on regulatory approval and route feasibility.

Intermodal transport combines modes under a coordinated movement plan. A common example is ocean transport followed by rail and road delivery. Intermodal design can lower cost and emissions while preserving acceptable service, but it requires effective transfer coordination and information visibility.

2.2 Total transportation cost

A basic transportation decision can be represented as:

where:

• TLC = total logistics cost for the movement;
• F = freight and handling charges;
• I = in-transit inventory carrying cost;
• H = origin and destination handling cost;
• R = expected cost of delay, damage, loss or service failure;
• E = relevant externality cost, such as carbon cost, when included in the decision.

All terms must be expressed in the same monetary period and for the same shipment or planning horizon. This is a decision model rather than an accounting identity: managers must estimate the terms consistently and avoid double counting handling or inventory costs.

In-transit inventory cost can be estimated as:

where V is the value of goods in transit, c is the annual inventory carrying-rate expressed as a decimal, and t is transit time in days. The formula assumes a simple proportional annual carrying charge, a 365-day year and no material variation in value during transit.

Worked example. A shipment worth $120,000 has a carrying rate of 18% per year. Air transport takes 2 days and ocean transport takes 28 days. The in-transit inventory cost is:

• Air: $120,000 × 0.18 × 2 ÷ 365 = approximately $118.36.
• Ocean: $120,000 × 0.18 × 28 ÷ 365 = approximately $1,656.99.

Ocean saves $1,538.63 in in-transit inventory cost only if the shipment value and carrying-rate assumptions are appropriate. The decision must still include freight, reliability, stockout exposure and customer-service effects.

2.3 Transportation evaluation criteria

Managers should assess:

• cost per shipment, pallet, kilogram, cubic metre or order;
• transit time and transit-time variability;
• frequency and geographic coverage;
• capacity availability and seasonal resilience;
• damage, loss and claims performance;
• carbon emissions and regulatory exposure;
• tracking quality and data integration;
• flexibility for volume and destination changes.

A low-cost mode with high variability may require additional safety stock. Therefore, mode selection and inventory policy should be analysed jointly rather than independently.

3. Warehousing and Distribution Structures

Warehousing performs more than storage. It supports consolidation, break-bulk, postponement, order fulfilment, packaging, returns processing, quality inspection and information synchronisation. The design question is not simply how much space is required, but what activities should occur at which locations and in what sequence.

3.1 Common distribution structures

Direct shipment moves products from supplier or manufacturer to the customer, often bypassing a distribution centre. It reduces handling and may be effective for large, predictable orders, but it can create high transportation cost for dispersed small orders.

Centralised distribution uses one or a few strategically located facilities. It pools inventory and can reduce safety stock through risk aggregation. However, average delivery distance may increase and service can become vulnerable to facility disruption.

Regional distribution positions inventory closer to demand markets. It improves response time and can reduce last-mile distance, but it increases facility, labour and inventory complexity.

Hub-and-spoke distribution routes flows through a central hub and regional spokes. It supports consolidation and broad coverage, although additional handling may increase damage risk and cycle time.

Factory or supplier direct fulfilment is useful for slow-moving, customised or bulky products. It may reduce inventory ownership but depends heavily on supplier reliability and information integration.

Drop-shipping allows a retailer to sell an item while the supplier ships directly to the customer. It expands assortment with limited retailer inventory, but the retailer may have less control over packaging, delivery and returns.

3.2 Facility roles

A storage warehouse holds inventory for later release. A distribution centre receives, sorts, stores and dispatches products. A fulfilment centre is designed for high-volume individual orders, often using automation and sophisticated order management. A cross-dock transfers inbound goods directly to outbound vehicles with minimal storage. A dark store or micro-fulfilment centre is a customer-inaccessible facility configured for online grocery or rapid local fulfilment.

Cross-docking is effective when demand is sufficiently known, inbound and outbound schedules are synchronised, product labelling is accurate and handling capacity is available. It is not a universal substitute for inventory storage; uncertain demand and schedule disruptions can make direct transfer impractical.

3.3 Warehouse processes

The principal warehouse processes are receiving, put-away, storage, replenishment, picking, packing, dispatch and returns processing. Layout and process design should reduce travel, congestion and unnecessary touches while maintaining safety and control.

Important design principles include:

• slot fast-moving items close to pick and dispatch areas;
• separate pedestrian and material-handling equipment routes;
• use location codes and scanning discipline;
• define appropriate storage methods for product characteristics;
• design for peak rather than average demand, but avoid excessive permanent capacity;
• create dedicated areas for quarantine, damaged stock and returns;
• integrate labour planning with order-release and carrier cut-off times.

Warehouse productivity measures include lines picked per labour hour, dock-to-stock time, order cycle time, space utilisation, inventory accuracy and picking error rate. A single productivity measure can be misleading: high lines per hour accompanied by high error and return rates does not represent superior performance.

4. Omnichannel Fulfilment Strategy

Multichannel distribution means that an organisation operates several channels. Omnichannel distribution goes further: inventory, order information, customer promises and fulfilment decisions are coordinated across channels. A customer may browse online, purchase through a mobile device, collect in a store, return by mail and receive support through a call centre. The customer experiences one brand, even though multiple operational nodes may be involved.

4.1 Core capabilities

An omnichannel system requires:

1. Unified inventory visibility: available-to-promise quantities must reflect stock in warehouses, stores, transit and sometimes supplier locations.
2. Order management: orders must be captured, prioritised, split or consolidated according to service and cost rules.
3. Distributed order management: the system selects the most appropriate fulfilment node.
4. Customer promise management: delivery or collection dates must be realistic and based on capacity, inventory and cut-off times.
5. Flexible fulfilment options: ship-from-warehouse, ship-from-store, click-and-collect, reserve-and-collect and supplier direct fulfilment may be combined.
6. Integrated returns: return authorisation, receipt, inspection, refund and disposition must be visible across channels.

4.2 Fulfilment-node selection

A node-selection rule should consider inventory availability, distance, handling cost, promised service, capacity and strategic priorities. The nearest node is not necessarily the best node. A nearby store may have the item but lack picking labour, suitable packaging or sufficient stock for walk-in customers.

A practical decision sequence is:

1. Filter nodes that can meet the promised delivery date.
2. Exclude nodes with insufficient available inventory or capacity.
3. Estimate total fulfilment cost for each feasible node.
4. Apply business rules concerning margin, channel ownership, customer priority and inventory protection.
5. Release the order and monitor exceptions.

Omnichannel inventory creates an important governance issue: who owns inventory allocated to a channel? If stores are measured only on store sales, employees may resist fulfilling online orders. Performance measures and incentives must therefore recognise total enterprise value rather than local channel results alone.

4.3 The economics of ship-from-store

Ship-from-store can reduce delivery distance and use existing inventory, but it introduces store-level picking cost, disruption to customer-facing operations, stock-record inaccuracies and packaging variation. It is most attractive where stores have adequate inventory accuracy, low or moderate picking complexity, sufficient labour and strong local order density.

Click-and-collect can reduce last-mile cost and failed-delivery risk. However, it requires reliable reservation, staging space, customer identification, collection-time management and procedures for uncollected orders.

5. Last-Mile Delivery

The last mile is the movement from a local facility or delivery route to the final customer. It is often the most expensive and operationally variable segment because orders are small, destinations are dispersed, traffic is uncertain and customers may not be present.

Key design choices include:

• home delivery versus collection points;
• scheduled windows versus immediate delivery;
• dedicated fleet versus crowdsourced or contracted capacity;
• parcel lockers and pickup points;
• route density and delivery territory design;
• electric vehicles, cargo bikes or conventional vehicles;
• delivery to business premises, residences or secure alternatives.

Route planning typically seeks to minimise distance, time or cost while satisfying vehicle capacity, driver hours, time windows and service commitments. In practice, the vehicle routing problem is computationally difficult, so organisations use optimisation software, heuristics and real-time adjustments rather than expecting a simple universal formula.

A basic delivery-cost measure is:

The numerator should specify whether it includes driver wages, vehicle depreciation, fuel or electricity, technology, failed attempts, contractor fees and overhead. The denominator should distinguish completed deliveries from attempted deliveries when service reliability is being evaluated.

Important last-mile metrics include first-attempt delivery rate, on-time-in-full delivery, cost per stop, stops per route hour, average delivery lead time, customer-contact rate, damage rate and carbon emissions per parcel. Increasing delivery speed without improving route density may reduce financial performance.

6. Reverse Logistics and Circular Flows

Reverse logistics manages the movement of products, packaging and materials from the customer or downstream point back to a recovery, inspection, resale, repair, recycling or disposal point. It is strategically important in e-commerce, retail, electronics, pharmaceuticals, industrial equipment and regulated products.

A typical reverse process is:

1. customer requests or initiates a return;
2. return authorisation and instructions are issued;
3. product is collected or dropped off;
4. product is received and identified;
5. condition, ownership and compliance are assessed;
6. product is routed to resale, refurbishment, repair, component recovery, recycling or disposal;
7. refund, replacement or credit is processed;
8. root causes are analysed.

Returns should not be treated solely as a cost centre. A returned product may have recoverable value, and return data can reveal sizing problems, quality failures, misleading descriptions or preventable packaging damage. Nevertheless, liberal returns policies can increase transport, inspection, repackaging and markdown costs. The organisation must align policy with product economics and customer value.

Reverse logistics has regulatory and ethical dimensions. Hazardous materials, batteries, medicines, personal data stored on devices and counterfeit or unsafe products require controlled disposition. Environmental claims must be supported by evidence; sending unwanted goods to landfill while describing the process as sustainable is misleading.

7. 3PL and 4PL Partnerships

A third-party logistics provider (3PL) performs one or more logistics activities for a client, such as transport, warehousing, fulfilment, customs brokerage or returns processing. A fourth-party logistics provider (4PL) generally coordinates multiple logistics providers and may manage network design, technology, procurement and performance governance without necessarily owning most physical assets.

7.1 Reasons to outsource

Organisations may outsource to obtain scale economies, specialist capability, technology, geographic reach, variable capacity, lower capital investment or faster market entry. Outsourcing also allows management to focus on core activities.

Potential disadvantages include loss of operational knowledge, dependence on a provider, data and integration challenges, service inconsistency, switching costs and reduced direct control over customer experience. Outsourcing is therefore a strategic decision, not merely a labour-cost comparison.

7.2 Partner selection

A structured evaluation should consider:

Contracts should specify service-level agreements, measurement definitions, pricing mechanisms, liability, insurance, data security, audit rights, subcontracting, business continuity, termination assistance and dispute resolution. A service-level agreement without reliable data definitions is weak governance. For example, “on-time delivery” must identify the promised time, delivery event, grace period and treatment of customer-caused delays.

8. Performance Measurement and Total-Cost Management

Logistics performance should be measured through a balanced scorecard rather than a single cost measure.

Inventory turns can be calculated as:

The formula assumes that both numerator and denominator use the same valuation basis. It is most meaningful when comparing similar businesses or consistent periods. High turns may indicate efficiency, but they can also indicate understocking and poor service; interpretation must therefore include availability and stockout measures.

The logistics cost-to-sales ratio is:

The ratio is useful for trend and benchmark analysis, but comparisons require consistent cost boundaries, sales definitions, geography and accounting treatment.

9. Technology, Visibility and Artificial Intelligence

Warehouse management systems coordinate locations, tasks, inventory and labour. Transportation management systems support carrier selection, tendering, consolidation, route planning and freight audit. Order management systems coordinate demand across channels. Application programming interfaces and event-based integrations can provide shipment milestones, while sensors and telematics can support condition and location monitoring.

Artificial intelligence can assist with demand sensing, estimated-time-of-arrival prediction, dynamic routing, labour scheduling, anomaly detection and returns classification. Its value depends on data quality, process discipline and human oversight. A model trained on historical delivery patterns may reproduce bias against certain regions or customer groups. Automated decisions should therefore be explainable enough for operational review, monitored for performance drift and subject to escalation.

Technology also expands cybersecurity exposure. Access controls, encryption, vendor-risk assessment, incident response, data minimisation and recovery testing are essential. Customer location, contact and purchasing data should be collected and retained only for legitimate purposes and handled according to applicable privacy law.

10. Contemporary and Strategic Issues

Several developments are reshaping logistics strategy:

• Urbanisation and congestion: delivery networks need consolidation centres, pickup points, time-window management and low-emission vehicles.
• Sustainability pressure: firms are measuring transport emissions, redesigning packaging, improving load factors and considering modal shifts.
• Resilience: geopolitical disruption, pandemics, extreme weather and labour shortages encourage multi-sourcing, flexible capacity and scenario planning.
• Automation: robotics, goods-to-person systems and autonomous equipment can improve productivity but require capital, maintenance, skills and safe work design.
• Platform logistics: marketplaces and digital freight platforms improve matching and visibility but may increase dependence on intermediaries.
• Urban fulfilment: micro-fulfilment can shorten delivery distance but may involve high property costs and fragmented inventory.

A strategic response should avoid technology-led decisions that ignore demand density, economics, workforce impact and regulatory requirements.

Applied Case: Northstar Homeware’s Omnichannel Transformation

Background

Northstar Homeware, an illustrative mid-sized retailer, sells kitchen and household products through 80 stores, a website and two online marketplaces. Its central distribution centre serves stores, while suppliers ship selected bulky items directly to customers. Online sales have grown rapidly, but the company has experienced late deliveries, inaccurate inventory information and high return-handling costs.

Problem

Customers can see an item as available online even when the stock is committed to a store order or cannot be located. The website promises two-day delivery across the country, although the central warehouse is far from several demand clusters. Store managers resist online fulfilment because their performance bonuses depend on store sales. Returns are sent to the central distribution centre, creating congestion and delaying refunds.

Analysis

The company maps order flows and finds that 62% of online orders are shipped from the central warehouse, 23% are supplier-direct, and 15% are fulfilled by stores after manual intervention. Analysis shows that many customers would accept collection from a store or parcel point, while bulky low-value orders are uneconomic to ship individually from the central facility. The company also identifies frequent return reasons associated with inaccurate product dimensions and incomplete web descriptions.

Approach and solution

Northstar adopts a segmented omnichannel design:

1. Fast-moving small products are stocked centrally and in selected regional stores.
2. Stores in high-density areas become controlled ship-from-store nodes, with dedicated picking windows and packaging standards.
3. Customers receive choices among home delivery, store collection and parcel-point collection.
4. A distributed order-management system selects the node using availability, promise date, cost and store-protection rules.
5. Bulky products remain supplier-direct where supplier service meets agreed standards.
6. A regional returns hub performs inspection, resale routing and refurbishment triage.
7. Store incentives include profitable online fulfilment and customer-service measures.
8. Product data governance is strengthened, especially dimensions, images and compatibility information.

Outcome

After a pilot in two regions, order promise accuracy improves, failed deliveries decline and store inventory productivity increases. The company does not pursue universal same-day delivery; instead, it offers rapid delivery only where order density and capacity justify it. Returns are processed closer to customers, while unsuitable products are identified for supplier and merchandising improvement.

Learning points

The case illustrates that omnichannel capability is an operating model rather than merely a website feature. Inventory visibility, incentives, returns, data quality and network economics must be designed together. It also shows why customer choice should be segmented: the fastest option is not always the most valuable or sustainable option.

Challenges and Limitations

Logistics models depend on assumptions that may fail during peak periods or disruption. Average demand can conceal geographic concentration and volatility. Cost comparisons may omit service failure, carbon, working capital or customer lifetime effects. Automation may improve throughput while reducing flexibility for exceptional orders. Outsourcing can reduce visible internal costs while creating dependency and weaker organisational learning. Finally, omnichannel integration can increase complexity, making governance and data stewardship as important as physical infrastructure.

Managers should therefore use sensitivity analysis, pilot implementations, scenario planning and post-implementation review. Decisions should be evaluated not only by immediate cost but also by service, resilience, sustainability, compliance and strategic fit.

Chapter Summary

Logistics and distribution strategy determine how products, information and returns move through a supply network. Transportation mode selection must consider total delivered cost, transit time, variability, reliability, emissions and inventory implications. Warehousing decisions involve facility roles, inventory positioning, process design and the trade-off between centralisation and responsiveness.

Omnichannel fulfilment integrates channels through shared inventory visibility, order management, realistic customer promises and coordinated returns. Last-mile delivery requires careful choices concerning route density, collection alternatives, delivery windows and fleet design. Reverse logistics can recover value and generate quality insight, but it requires disciplined inspection, disposition and regulatory control.

3PL and 4PL partnerships provide capability and scale but require rigorous selection, contractual clarity, data integration and governance. Balanced performance measures should cover customer service, cost, assets, processes, resilience and sustainability. Technology and AI can improve visibility and decisions, but their benefits depend on reliable data, cybersecurity, human oversight and responsible implementation. Effective logistics strategy ultimately balances efficiency, responsiveness, resilience and customer value.

Key Terms

Logistics: Coordinated management of product, information and related flows from origin to consumption.

Distribution: The network and processes used to move products to customers or downstream locations.

Omnichannel: An integrated approach in which customer channels share information, inventory and fulfilment capabilities.

Intermodal transport: Movement using two or more transportation modes within one coordinated flow.

In-transit inventory: Stock committed to a shipment but not yet received at its destination.

Distribution centre: A facility that receives, stores, processes and dispatches products.

Fulfilment centre: A facility designed primarily to process customer orders, especially individual orders.

Cross-docking: Transferring inbound goods to outbound vehicles with minimal storage.

Drop-shipping: Supplier-direct fulfilment of a retailer’s customer order.

Last mile: The final movement from a local node to the customer.

Click-and-collect: Online ordering followed by customer collection at a designated location.

Reverse logistics: Management of product, packaging and material flows returning downstream to upstream or recovery points.

3PL: A third-party provider performing outsourced logistics activities.

4PL: A coordinating logistics integrator managing multiple providers and network activities.

Service-level agreement: Contractual definition of expected performance and remedies.

Distributed order management: Selection and coordination of fulfilment nodes for customer orders.

Inventory pooling: Combining demand across locations to reduce aggregate uncertainty and safety stock.

Total delivered cost: The complete relevant cost of moving and fulfilling a product, including service-related effects.

First-attempt delivery rate: The proportion of deliveries completed successfully on the initial attempt.

Postponement: Delaying final configuration, packaging or customisation until demand is clearer.

Review Questions

Short Answer Questions

1. Distinguish between multichannel and omnichannel distribution.
2. State two advantages and two limitations of centralised distribution.
3. What is cross-docking, and when is it most appropriate?
4. Identify four important last-mile delivery metrics.
5. Explain one strategic reason for using a 3PL provider.

Long Answer Questions

1. Evaluate the major transportation modes using cost, speed, reliability, flexibility and sustainability criteria.
2. Explain how warehouse roles and processes should be designed for omnichannel fulfilment.
3. Discuss the benefits and risks of ship-from-store and click-and-collect.
4. Develop a governance framework for managing a 4PL relationship.
5. Explain how reverse logistics can create both financial and environmental value.

Analytical / Application Questions

1. A company is choosing between air and ocean transport for high-value goods. Using total delivered cost logic, identify the cost and service variables that should be included and explain why freight rate alone is insufficient.
2. Design a fulfilment policy for a retailer with stores in major cities, one national warehouse and supplier-direct bulky products. Specify which products should use each fulfilment route and justify your choices.
3. A logistics provider reports a high on-time rate but also rising customer complaints and failed first attempts. Diagnose how the performance measurement system may be misleading and recommend corrective measures.

Multiple Choice Questions with Answers

Question 1

Which transportation mode generally provides the greatest geographic flexibility for door-to-door regional delivery?

A. Road

B. Rail

C. Water

D. Pipeline

Correct Answer: A. Road

Question 2

Which cost is directly represented by V × c × (t / 365)?

A. Warehouse rent

B. In-transit inventory carrying cost

C. Vehicle depreciation

D. Reverse logistics cost

Correct Answer: B. In-transit inventory carrying cost

Question 3

What is the defining feature of cross-docking?

A. Long-term storage of safety stock

B. Direct transfer from inbound to outbound flow with minimal storage

C. Supplier production postponement

D. Customer collection from a retail store

Correct Answer: B. Direct transfer from inbound to outbound flow with minimal storage

Question 4

Which capability is most essential to credible omnichannel fulfilment?

A. Separate inventory records for each channel

B. Unified inventory visibility

C. Elimination of all physical stores

D. Use of only one transportation mode

Correct Answer: B. Unified inventory visibility

Question 5

Which activity belongs to reverse logistics?

A. Selecting a production machine

B. Inspecting and routing returned products for resale or recovery

C. Forecasting raw-material demand only

D. Negotiating a forward sales promotion

Correct Answer: B. Inspecting and routing returned products for resale or recovery

Question 6

A 3PL primarily differs from a 4PL because a 3PL generally:

A. Performs specific logistics activities directly

B. Owns every asset in the supply chain

C. Sets national transport regulations

D. Eliminates the need for contracts

Correct Answer: A. Performs specific logistics activities directly

Question 7

What is a major risk of ship-from-store fulfilment?

A. It makes inventory visibility unnecessary

B. It may disrupt store operations and expose inventory inaccuracies

C. It always increases delivery distance

D. It prevents customer collection

Correct Answer: B. It may disrupt store operations and expose inventory inaccuracies

Question 8

If annual cost of goods sold is $9 million and average inventory at cost is $3 million, inventory turns equal:

A. 2 turns

B. 3 turns

C. 6 turns

D. 12 turns

Correct Answer: B. 3 turns

Question 9

Which measure most directly evaluates whether a delivery succeeds on its first attempt?

A. Inventory turns

B. First-attempt delivery rate

C. Warehouse space utilisation

D. Dock-to-stock time

Correct Answer: B. First-attempt delivery rate

Question 10

Why should an omnichannel node-selection system not simply choose the nearest node?

A. The nearest node may lack capacity, accurate stock or suitable fulfilment capability

B. Distance has no effect on logistics cost

C. Customers always prefer central warehouses

D. Nearest-node selection is prohibited by transport regulation

Correct Answer: A. The nearest node may lack capacity, accurate stock or suitable fulfilment capability