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1. Article citation
Author: Ralph Henderson
Year of publication: 2012
Article title: Direct-to-consumer challenges for distribution Journal: CSCMP's Supply Chain Quarterl
Number and date: Number 4, 500 E, Quarter 5 2012
2. Target audience for article
Target audiences are practitioners who do electronic commerce and students who interested in Supply Chain. 3. Purpose of article
Nowadays, more and more people prefer online shopping which lead to the growth of electronic commerce. Considering small orders for individual consumers, e-commerce has to face big changes in warehousing and distribution operations to improve the efficiency of direct-to-consumer delivery. Actually, it’s not only a big challenge for e-commerce, but also a great opportunity for each e-commerce retailer to achieve market share. In order to compete with others, company should satisfy consumers’ demand for order timeliness, tracking, and accuracy from DC operations. 4. Article findings

This article concludes that e-commerce is driving distribution centers to increase their unit flow in less space and in less time, and companies may have to re-evaluate the design of their distribution centers to be sure they can meet the e-commerce challenge. The author summarizes three key points for e-commerce companies to achieve success: First of all, DCs have ability to manage inventory from receipt to order fulfillment in a more sophisticated way. Secondly, companies must have warehouse management system and unit sortation systems to handle the increasing orders from consumers. Last but not the least, companies are going to have to coordinate their marketing communications with their supply chain and logistics organizations. E-commerce companies will face a great challenge to their success in the next three to five years. Many of them now get help from consultants and systems integrators to figure out an efficient method to manage this growing distribution...
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