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REI's Supply Chain Management/Channel/Method of Distribution

Supply chain management is an important part of a company's distribution strategy. I need help outlining REI's (retail store) current channel and methods of distribution. Also I need to know how they use supply chain management and if it works well or could it use any improvements.


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REI currently distributes products to its' stores and customers in a revolutionary manner. It is estimated that 30 percent of sales customers input orders in directly at home or from an REI store and pick up at the store at their convenience. This is a win-win for both the customer and REI. In some cases REI's vendors ship the product directly from their warehouse, bypassing the REI distribution center entirely. This allows the vendor to partner with REI, and prevents REI from holding costs associated with inventory. REI can also offer more products since it is not actually investing in the goods until the customer orders the product when the product is shipped directly from vendors. In the cases in which product is shopped from REI's distribution center stores are able to reduce on hand inventory and still supply customers rapidly.

Customers can use in-store kiosks to order ...

Solution Summary

This solution outlines REI's current channel and methods of distribution, and how the company uses supply chain management. It evaluates the systems and determines if improvements could be made. It includes APA references and links.