How do different supply chain models align with last-mile logistics strategies?
Release date:
2024-01-26
Author:
Jinhua Logistics
Supply chain models vary across different commercial flows: the W2B model serves wholesale markets; the D2B model is applied in traditional distribution channels; the B2B model has emerged alongside consumption upgrades; and the E2B model is a product of e‑commerce platforms. Under these supply chain models, logistics approaches, urban delivery terminal scenarios, and capacity‑organization strategies all differ significantly.
Examining last-mile logistics models across different supply chain architectures: How can urban delivery adapt to market dynamics?
Supply chain models vary across different commercial flows: the W2B model serves wholesale markets; the D2B model is applied in traditional distribution channels; the B2B model has emerged alongside consumption upgrades; and the E2B model is a product of e‑commerce platforms. Under these supply chain models, logistics approaches, urban delivery terminal scenarios, and capacity‑organization strategies all differ significantly.
Fundamentally, both consumer‑centric and product‑centric attributes jointly shape a product’s SKU and channel characteristics, which in turn determine the distinctions among supply chain models. Accordingly, we categorize retail channel stakeholders into four segments—brand/manufacturer (B), distributor (D), market (W), and e‑commerce (E)—while classifying product categories by shelf life: short‑shelf‑life items with a 0–7 day window, fast‑moving consumer goods spanning 1 week to 1 year, and durable goods exceeding 1 year. By disaggregating across these two dimensions—retail channels and product categories—we examine how different supply chain models align with corresponding last‑mile logistics approaches.
1) W2B Wholesale Market Urban Delivery Model
The W2B model primarily serves various wholesale markets, focusing on short-shelf-life products such as vegetables and seafood, which are delivered to agricultural markets via full-truckload transportation. Meanwhile, for fast-moving consumer goods and durable small items—such as hardware and building materials—their distribution is handled from the place of origin through express logistics networks or dedicated‑line delivery services, reaching specialized markets.
Under this model, last-mile delivery orders are typically time-sensitive but relatively infrequent. The primary players fulfilling these orders include independent gig‑based drivers operating in the local area, merchants’ own transport capacity, and urban freight‑platform operators. Urban freight platforms aggregate previously fragmented, on‑demand transport resources and price services according to vehicle type, thereby establishing a more standardized pricing structure.
However, this business model lacks strong core barriers to entry and is easily replicable—anyone with transportation capacity and customer traffic can join. This is precisely why companies like Manbang, Didi, and Meituan are all able to compete in this space.
At present, the online penetration rate of urban freight‑hailing platforms remains relatively low, with their main competitors being independent drivers who operate informally around wholesale markets. To boost the online share of customer orders, outpace rival platforms, and capture existing market share, these platforms must adopt a range of effective strategies.
2) D2B dealer-based urban delivery model
The D2B model is primarily used in traditional distribution channels, whereby manufacturers or brand owners deliver products to distributors’ warehouses via full-truckload or dedicated‑line logistics, after which distributors handle last‑mile delivery within cities. Under this model, ownership of the goods transfers at the warehouse level, and last‑mile logistics is managed independently by distributors and other resellers, typically using vehicles purchased directly by the distributor.
In the fast-moving consumer goods (FMCG) industry, under this model, sales representatives’ responsibilities extend beyond delivery to include maintaining customer relationships and shelf‑placement tasks. Because each distributor carries a limited product portfolio, deliveries are typically single‑item shipments. To meet the purchasing needs of retail outlets, different distributors may end up making redundant deliveries and store visits, which can drive up vehicle‑related costs and result in resource inefficiencies.
With the emergence of e‑commerce and new retail channels, the traditional D2B distributor‑based urban delivery model can no longer meet consumers’ rising expectations. Consequently, many fast-moving consumer goods brands have begun to take over logistics at the distributor level, managing last‑mile delivery themselves—either through in‑house operations or outsourcing. This trend is driving the transformation and upgrading of the D2B distributor‑centric urban delivery model.
3) B2B Brand Mall Integration Model
As consumer spending upgrades, brands have increasingly adopted direct‑to‑channel strategies, giving rise to the B2B model. This approach features a streamlined last‑mile logistics chain, bypassing multiple layers of distributors and enabling direct delivery from the brand’s warehouse to retail outlets.
Due to their stringent shelf-life requirements, short‑shelf‑life products have a limited distribution footprint and are typically delivered directly from the brand’s warehouse to retail outlets. In contrast, fast‑moving consumer goods and durable goods are transported via dedicated routes or full‑truckload shipments to regional warehouses, from which they are then distributed to retail points of sale.
Dairy producers typically establish their own logistics companies to handle shippers’ warehousing, transportation, and last-mile delivery needs. Against the backdrop of channel diversification and the integration of online and offline channels, brands must determine how to deliver products to the smallest distribution unit via the shortest routes, at the fastest speed, and with minimal losses, while achieving value alignment through minimal inventory levels.
Urban delivery operations in the enterprise sector are typically one-sided, with last-mile delivery representing a pure cost center that does not generate profit. As the division of labor becomes increasingly specialized, brand‑owned logistics functions are gradually spun off to handle logistics internally or outsource to third‑party providers. However, owing to their affiliation with established brands, such urban delivery firms often find themselves limited to partnering with small and medium‑sized brands, while competitors’ urban delivery services remain unable to secure these contracts, thereby constraining their ability to scale.
As such, with the rise of e‑commerce and new retail, traditional supply chains and logistics networks can no longer keep pace with market demand. Companies must continuously innovate and optimize their supply chain and transportation models to enhance operational efficiency and customer satisfaction.
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