Multi-Channel Distribution in the Apparel Industry Study & Survey Results

Benefits and Drawbacks to Distribution Methods
Apparel retailers are equally divided on which strategy is best for fulfillment and distribution, whether it’s running a multi-distribution platform or a single distribution center.

Each methodology seemingly has advantages as well as possible drawbacks. Which distribution strategy a company chooses is likely predicated on variables such as organizational structure, available resources, volume, SKUs, inventory turns, order filling techniques, etc.

Companies running a multi-platform distribution operation feel they are better able to control costs and maintain greater flexibility and visibility over process and inventory.

Accordingly, this strategy enables these companies to stock a broader inventory, better capitalize on economies of scale obtainable through resources such as labor, equipment and inventory shared across the various selling and fulfillment channels.

However, operations managers are advised of possible drawbacks experienced by some companies. A decentralization of processes and a disparate workforce, a lack of available or sufficient technology for effectively managing the complexities a multi-platform distribution operation, duplication of order processing that can occur with multi-item orders being fulfilled at both DC and stores, greater potential for errors as multiple points of risk may exist, and inconsistencies meeting customer requirements all loom as possible problems.

Alternatively, those operating a single distribution strategy contend they have greater visibility and control over the entire process and are able to provide expedient service at a reasonable cost back to customers.

However, this model also can have imperfections. Distribution managers report concerns including issues stemming from the limitations presented in a centralized operation such as the inability to handling high volume or high velocity distribution procedures; labor issues that include adequately maintaining and training a workforce; and the ability to handle increased throughput.