Logistics Service Providers and Route Economics Assessment
Module 6 • 10 Questions
Question 1 of 10
0 of 10 answered
When Josh Denims removed its 10-distributor layer and made C&FA Raj Distribution Services deliver directly to 180 retailers, what happened to RDS's workload and remuneration?
A
Volume dropped from 3,600 to 2,500 units and fees fell proportionally.
B
Workload rose from ~2,500 bulk full-case shipments per month to ~3,600 fragmented cartons (about half of retailers ordering 15 or fewer), with roughly two-thirds of shipments needing repackaging and collections shifting from 10 distributors on 21-day credit to 180 retailers who pay only when new shipments arrive, while the fee stayed flat at ₹60,000 per month.
C
The manufacturer took over warehousing so RDS's workload fell to invoicing only.
D
RDS was converted into a distributor and began earning distributor margins.