JMD sells their products to consumers primarily through national drugstore chains, pharmacies, and Amazon, which requires significant efforts in logistics and after-sales support.

The company is considering expanding their sales by selling their products through an e-Commerce direct sales model.

JMD major production site is Toronto, Ontario. The inventory is being held in the JMD distribution centre (DC) next to the factory. The DC currently fills orders for major retailers and the company is thinking that consumer orders from their direct sales channel could also be fulfilled there with a bit of effort.

The company identified 3 options to serve the market:

• Option 1 - upgrade the existing JMD DC's in Toronto to handle both e-commerce direct sales orders and major retailers orders.
• Option 2 - Expand the JMD fulfillment network. Establish regional DCs in Montreal, and Calgary to complement the existing Toronto DC.
• Option 3 - outsource fulfillment to a capable 3PL company. This would allow JMD to focus on production, demand planning, and marketing.

What functional trade-offs that JMD need to analyse (e.g. marketing vs. logistics, manufacturing vs. logistics)? (10 marks)