The two supply network designs that the distributor can propose to counter the manufacturer’s proposal are the distributor storage with package carrier
delivery and the distributor storage with last mile delivery. Both of these counter-proposals offer higher order visibility for the customer while having simpler
information infrastructure than with manufacturer storage. The response time for both is excellent, and the customer experience is also superior to the direct
model. If the manufacturer is trying to provide excellent customer service, the increased costs in transportation and potentially higher levels of inventory may
be acceptable tradeoffs.