In this task I am going to explain the process of distributing goods through different channels from the manufacturer to the customers. This report is based on the different distribution channels, which business use to distribute goods to the customer.
Firstly, this report will explain the different channels that the manufacturers use for distribution and explaining the process that is used by a range of businesses.
Secondly, this report will explain their methods that will be compared, in terms of distributing products and services.
Lastly, the report will end with the conclusion of how the role of distribution systems make the sector more efficient, cost effective .and my overall opinions, regarding the distribution systems.
The term distribution means the process of delivering, storing and selling goods. So this way, the products can be used by customers.
Delivering is about what types of transport which are used to carrying and delivering goods. The types of transport these are: Rail, Road, Air and Water. Storing is about where the goods is about where the products come from to be stored.
Selling is the process you do, when you sell the goods.
Distribution channels consist of a chain of business or intermediaries which form a process where the goods and services pass until it reaches the consumers. It includes: wholesalers, retailers, distributors and even the internet. These channels can be broken in two different way direct and indirect channels.
Direct channel the consumers are allowed to buy their products directly from the manufacturer. The direct channels are also considered shorter that indirect channels.
The indirect channel the consumer are allowed to buy goods from wholesaler.
Channel 1: The intermediary levels are wholesalers and retailers, the ones that buy products from producers or manufacturer and store them in large quantities of