The ACME Supply Company has traditionally served the wholesale channel. Wholesale

customers receive full or partial pallet shipments via LTL carriers.

Order to ship is typically

next day for orders received prior to the cut-off time; delivery can take up 1 week for

distant customers, with the average being about two days.

Except for busy periods of the

year, ACME's DC is open from Monday to Friday.

ACME has a good relationship with its

wholesale customers, built primarily on quality service.

ACME, as a small company, is not

the price leader in its market.

With the growth in home-based businesses, ACME believes there is an opportunity to

directly reach end-consumers via an on-line, E-Tail channel.

ACME has no experience in the

E-tail business.

You have been assigned to a project team which is responsible for

evaluating the E-Tail market opportunity. Answer the following questions about ACME's E-

Tail opportunity. You are expected to demonstrate critical thinking at the post graduate

level - answers such as "It will cost more" or "Service will be higher" are insufficient. You

are being challenged here to demonstrate your own personal understanding of channels

and relationships based on our learnings from the course (not google)

The ACME Supply Company's distribution network now consists of two distribution

centres of roughly equal size as a result of a corporate merger: one is located in

Brampton, Ontario; the second DC is in Laval, just north of Montreal. Explain the impact

of changing from the existing two DCs into one new DC located in Kingston, Ontario

based on your course learnings. Geography is important here, ensure you are familiar

with the locations.