Distribution Cost Advantage

Distribution Cost Advantage

A source of competitive advantage that depends on the efficient delivery of a product or service to customers.

Distribution Cost Advantage

A comparative advantage that one company has over another because of its ability to deliver goods or services more quickly and less expensively. For example, a flower delivery service in the town where the order was placed has a distribution cost advantage over an identical service out of state, as it can deliver flowers more quickly and cheaply.
References in periodicals archive ?
They push their competitiveness to an efficiency frontier, achieving a 15 percent to 30 percent distribution cost advantage over competitors while delivering equal or better service levels.
We observe from our own studies, for example, that companies selling $4 billion or more of annuities enjoy a 35 to 70 basis point distribution cost advantage over smaller competitors--which may translate into a 1% to 2% improvement in return on equity.
They push their competitiveness to an efficiency frontier, achieving a 15 to 30 percent distribution cost advantage over competitors while delivering equal or better service levels.
From a purely financial perspective, a distribution cost advantage of 50 basis points translates directly into an increase in return on equity of nearly 1.
Full browser ?