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Digital collaborations enable brands to benefit from dropshipping

A new study from DiCentral, a B2B managed services provider, and the Center for Supply Chain Research at Lehigh University, details the supply chain impact felt by retailers and manufacturers in the rapid development of e-commerce. The whitepaper, “Supply Chain Collaboration in Transformative Vertical Industries: Implications of Omnichannel and Dropshipping,” examines the motivations, challenges, benefits and supply chain implications of online shopping and home delivery from the perspectives of some 180 C-level executives and senior managers in retail and consumer product goods manufacturing.

Study participants shared the operational and financial implications associated with the shift from traditional brick-and-mortar stores to online e-commerce. These challenges are particularly acute in home delivery and order fulfillment models, where products are shipped directly from the manufacturers and the retailer no longer carries the physical inventory.

The study also shows efforts being made to keep up with the pace of change, the technological investments necessary to accommodate them, and the benefits and risks associated with this new online retail reality. The study suggests retailers and manufacturers who have adopted a high degree of digital collaboration have benefited most from dropshipping.