Factory Gate Pricing

An Analysis of the Dutch Retail Distribution

H.M. Le Blanc, F.C.A.M. Cruijssen, H.A. Fleuren, M.B.M. de Koster

    Research output: Working paperDiscussion paperOther research output

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    Abstract

    Factory Gate Pricing (FGP) is a relatively new phenomenon in retail distribution.Under FGP, products are no longer delivered at the retailer distribution center, but collected by the retailer at the factory gates of the suppliers.Owing to both the asymmetry in the distribution networks (the supplier sites greatly outnumber the retailer distribution centers) and the better inventory and transport coordination mechanisms, this is likely to result in high savings.A mathematical model was used to analyze the benefits of FGP for a case study in the Dutch retail sector.Extensive numerical results are presented to show the effect of the orchestration shift from supplier to retailer, the improved coordination mechanisms, and sector-wide cooperation.
    Original languageEnglish
    Place of PublicationTilburg
    PublisherVakgroep CentER
    Number of pages30
    Volume2004-35
    Publication statusPublished - 2004

    Publication series

    NameCentER Discussion Paper
    Volume2004-35

    Fingerprint

    Factory
    Retail distribution
    Retailers
    Pricing
    Suppliers
    Coordination mechanism
    Distribution center
    Orchestration
    Product pricing
    Distribution network
    Mathematical model
    Asymmetry
    Retail sector
    Savings

    Keywords

    • pricing
    • retailing
    • distribution
    • supply chain management
    • Netherlands

    Cite this

    Le Blanc, H. M., Cruijssen, F. C. A. M., Fleuren, H. A., & de Koster, M. B. M. (2004). Factory Gate Pricing: An Analysis of the Dutch Retail Distribution. (CentER Discussion Paper; Vol. 2004-35). Tilburg: Vakgroep CentER.
    Le Blanc, H.M. ; Cruijssen, F.C.A.M. ; Fleuren, H.A. ; de Koster, M.B.M. / Factory Gate Pricing : An Analysis of the Dutch Retail Distribution. Tilburg : Vakgroep CentER, 2004. (CentER Discussion Paper).
    @techreport{4357d6e67a744bd6b5a9d41c3895a0d4,
    title = "Factory Gate Pricing: An Analysis of the Dutch Retail Distribution",
    abstract = "Factory Gate Pricing (FGP) is a relatively new phenomenon in retail distribution.Under FGP, products are no longer delivered at the retailer distribution center, but collected by the retailer at the factory gates of the suppliers.Owing to both the asymmetry in the distribution networks (the supplier sites greatly outnumber the retailer distribution centers) and the better inventory and transport coordination mechanisms, this is likely to result in high savings.A mathematical model was used to analyze the benefits of FGP for a case study in the Dutch retail sector.Extensive numerical results are presented to show the effect of the orchestration shift from supplier to retailer, the improved coordination mechanisms, and sector-wide cooperation.",
    keywords = "pricing, retailing, distribution, supply chain management, Netherlands",
    author = "{Le Blanc}, H.M. and F.C.A.M. Cruijssen and H.A. Fleuren and {de Koster}, M.B.M.",
    note = "Pagination: 30",
    year = "2004",
    language = "English",
    volume = "2004-35",
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    Le Blanc, HM, Cruijssen, FCAM, Fleuren, HA & de Koster, MBM 2004 'Factory Gate Pricing: An Analysis of the Dutch Retail Distribution' CentER Discussion Paper, vol. 2004-35, Vakgroep CentER, Tilburg.

    Factory Gate Pricing : An Analysis of the Dutch Retail Distribution. / Le Blanc, H.M.; Cruijssen, F.C.A.M.; Fleuren, H.A.; de Koster, M.B.M.

    Tilburg : Vakgroep CentER, 2004. (CentER Discussion Paper; Vol. 2004-35).

    Research output: Working paperDiscussion paperOther research output

    TY - UNPB

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    AU - Le Blanc, H.M.

    AU - Cruijssen, F.C.A.M.

    AU - Fleuren, H.A.

    AU - de Koster, M.B.M.

    N1 - Pagination: 30

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    N2 - Factory Gate Pricing (FGP) is a relatively new phenomenon in retail distribution.Under FGP, products are no longer delivered at the retailer distribution center, but collected by the retailer at the factory gates of the suppliers.Owing to both the asymmetry in the distribution networks (the supplier sites greatly outnumber the retailer distribution centers) and the better inventory and transport coordination mechanisms, this is likely to result in high savings.A mathematical model was used to analyze the benefits of FGP for a case study in the Dutch retail sector.Extensive numerical results are presented to show the effect of the orchestration shift from supplier to retailer, the improved coordination mechanisms, and sector-wide cooperation.

    AB - Factory Gate Pricing (FGP) is a relatively new phenomenon in retail distribution.Under FGP, products are no longer delivered at the retailer distribution center, but collected by the retailer at the factory gates of the suppliers.Owing to both the asymmetry in the distribution networks (the supplier sites greatly outnumber the retailer distribution centers) and the better inventory and transport coordination mechanisms, this is likely to result in high savings.A mathematical model was used to analyze the benefits of FGP for a case study in the Dutch retail sector.Extensive numerical results are presented to show the effect of the orchestration shift from supplier to retailer, the improved coordination mechanisms, and sector-wide cooperation.

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    KW - retailing

    KW - distribution

    KW - supply chain management

    KW - Netherlands

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    T3 - CentER Discussion Paper

    BT - Factory Gate Pricing

    PB - Vakgroep CentER

    CY - Tilburg

    ER -

    Le Blanc HM, Cruijssen FCAM, Fleuren HA, de Koster MBM. Factory Gate Pricing: An Analysis of the Dutch Retail Distribution. Tilburg: Vakgroep CentER. 2004. (CentER Discussion Paper).