Research On Distribution Channel Selection Of Manufacturer Considering Direct Store Delivery

The development of e-commerce brings great challenges to traditional manufacturers,which leads them to gradually begin reconfiguring their distribution channels into online or dual channels.How to choose an optimal distribution channel under different backgrounds becomes the focus of industry and academia.Introducing Direct Store Delivery(DSD),this thesis investigates the channel selection strategy of manufacturers.This thesis constructs manufacturer channel selection models considering DSD and traditional distribution,and analyzes the impact of DSD on manufacturers’ channel selection strategies,taking the traditional distribution model as the benchmark model.The results show that the optimal distribution channel for manufacturers in both the DSD and benchmark model are dual channels,which can generate market expansion effects neutralizing the adverse effects of channel conflicts.The dominance of offline channels and online channels depends on the operational efficiency of offline channels and the entry cost of online channels.When the operational efficiency is high and the entry cost is high,offline channels prevail over online channels;otherwise,online channels prevail over offline channels.In contrast to the benchmark model,DSD can incentivize consumers to purchase from offline channels and expand the consumer market in offline channels,therefore promoting offline channels superior to online channels.In addition,for a given distribution channel,this thesis further investigates the impact of DSD on supply chain members’ pricing decisions and profitability by comparing the equilibrium prices,equilibrium profits,consumer welfares and social surpluses in the DSD and benchmark model.The results show that DSD can alleviate vertical conflicts between manufacturers and retailers,mitigate double marginal effects,leading to higher profits in the supply chain system than the benchmark model.However,DSD can improve manufacturers’ profits and reduce retailers’ profits,resulting in conflict of distribution model preferences between the two parties.Therefore,this thesis designs an incentive contract which effectively eliminate the conflict between manufacturers and retailers,and achieve supply chain pareto improvement.This thesis provides decision supports for manufacturers applying DSD to make distribution channel selection and pricing decisions,specifying that manufacturers should reconfigure their distribution structure into a dual channel structure by constructing an offline channel or online channel,and flexibly adjust their pricing strategy according to the distribution model.Moreover,this thesis can provide practical guidance and decision basis for enterprises to adopt DSD,and provide guidance for supply chain members to design incentive contracts to achieve pareto improvement.