A network designer needs to consider product characteristics as well as network requirements when deciding on the appropriate delivery network. The various networks considered earlier have different strengths and weaknesses. Various delivery networks can be ranked relative to each other along different performance dimensions. A ranking of 1 indicates the best performance along a given dimension and the relative performance worsens, as the ranking gets higher.
Only niche companies will end up using a single distribution network. Mostly companies are best served by a combination of delivery networks. The combination used will depend upon product characteristics as well as the strategic position that the firm is targeting. The suitability of different delivery designs (from a supply chain perspective) in various situations can also be determined with respect to the same characteristics.
An excellent example of a hybrid network is W.W. Grainger that combines all the above options into its distribution network. The network, however, is tailored to match the characteristics of the product or the needs of the customer. Fast moving and emergency items are stocked locally and customers can either pick them up directly or are shipped depending upon the urgency. Slower moving items are stocked at a national distribution center from where they are shipped to the customer within a day or two. Very slow moving items are typically drop shipped from the manufacturer and involve a longer lead time. Another hybrid network is Amazon where some items are stocked at their warehouse while other slow moving items may be drop shipped from distributors or publishers.
