Q) 

Abdullah’s mother is a wonderful cook and her specialty is baking. Abdullah is a good student and he wants to implement his knowledge. One day while enjoying homemade oven fresh cookies with her mother at home; he came up with the idea of home-baked cake boutique with direct-shipping distribution. He thought of collaborating with someone who can showcase their products on his / her website. When the order is received, the website will communicate the order details to Abdullah’s mother who will then take care for the delivery of the product which is exactly what is done in Direct Shipping. There is no involvement of the mediator, which is in this case is the online storefront, except for alerting the boutique owner about the order. 

Requirement: 

a) Discuss the pros and cons in terms of customer value and supply chain cost for direct shipping distribution suggested by Abdullah for the home-based cake boutique for his mother. 

b) The Business Grew due to Abdullah’s brilliance & now they need a Distribution Advisor for their business. You’re hired, what else could be the possible Distribution Network(s) / Designs you’ll initiate & why?

Answer rating: 100% (QA)

Eventhough direct shipping create direct contact with customers and one can understand customers bet... View the full answer