•The major advantage of direct shipment network is the elimination of intermediate warehouses and the simplicity of its operation and coordination.
•Saves a lot of time as the time required for distribution of goods from the supplier to the retail store would be short because each shipment goes direct.
•As goods move directly from the supplier to the retailer there is less handling of the products as a result there is less product damage.
•Since the distribution is direct, the invoice match receiving records resulting into ease of maintaining store records.
•The direct shipment network is justified if the retail stores are large enough because with the small size of retail stores the direct shipment network tends to have high costs.
•Direct shipment from the supplier to the retailer poses a lot of hassles for the store personnel e.g. more deliveries, paperwork, loading and unloading etc.
•Due to uncertainties of shipments from suppliers such as delay in transportation, wrong goods supplied, transit damage make it necessary to maintain safety stock.
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