Factors Influencing Distribution Network

Distribution refers to the steps taken to move and store a product from the supplier stage to the customer stage in the supply chain. Distribution is a key driver of the overall profitability of a firm because it directly impacts both the supply chain cost and the customer experience. Performance of a distribution network is evaluated along two dimensions: customer needs that are met and cost of meeting customer needs.
dnd factors

*Response time is the time between customer order placement and when customer receives the order
*Product variety is the number of different products/configurations that a customer desires from the distribution network
*Product availability is the probability of having a product in stock when a customer order arrives
* Customer Experience includes the ease with which the customer can place and receive their order
*Order visibility is the ability of the customer to track their order from placement to delivery
*Returnability is the ease with which a customer can return unsatisfactory merchandise and the ability of the network to handle such situations

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