Which fulfillment channel is best for low variety, make-to-order goods?

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The fulfillment channel of manufacturer storage with direct delivery is ideal for low variety, make-to-order goods because it allows for a streamlined and efficient process. In this scenario, the goods are produced based on specific customer orders, rather than being stored in inventory. Using direct delivery means that the manufactured items go straight from the manufacturer to the customer, eliminating unnecessary steps that could add time and cost to the fulfillment process.

For low variety goods, the predictability in demand helps simplify the logistics, making it feasible for manufacturers to produce goods only when an order is received. This method also aligns well with just-in-time production practices, reducing the need for extensive warehousing and minimizing inventory holding costs. Additionally, direct delivery means that customers receive their orders more quickly, enhancing customer satisfaction.

Other options have their own focuses which do not align as well with low variety, make-to-order scenarios. For instance, manufacturer storage with drop shipping involves more intermediary steps that could complicate fulfillment. A distribution center (DC) in the supply chain may introduce additional handling and time delays which aren't necessary for make-to-order setups. Direct-to-consumer shipping may also introduce more variability and potential complexities regarding inventory management that are counterproductive in a low variety context.

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