Supply chain management is an important part of a company's distribution strategy. Evaluate (REI) Recreational Equipment Incorporated and outline their current channel and methods of distribution. How do they use Supply Chain Management? Does it work well? Any suggestions for improvement
REI has two distribution centers, one in Washington and the other in Pennsylvania in which they receive products from vendors and distribute them to REI stores across the country. In addition, online and phone orders are processed through these distribution centers. The centers are state of the art, with each boasting a "combined 13 miles of automated conveyor systems, laser scanners, and RFID terminals"(http://www.rei.com/jobs/dc.html). Within these centers merchandise is received, priced, stored, picked, packaged and ship to stores and customers. In addition, online customers have the option to have items shipped directly to the store with free shipping, which allows REI to process orders more efficiently and increases sales ...
This very detailed solution outlines REI's supply chain channel management and methods of distribution. It discusses whether the system works well, and offers suggestions for improvement. It includes links and examples.