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    Distribution & Retail Management

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    Teneg82
    Distribution involves a series of operations that move goods from manufacturers to consumers. It accounts for about a quarter of the price of consumer goods. The main objectives of distribution are to get the right goods to the right place at the right time at the lowest cost. The key activities include transportation, warehousing, order processing, and inventory maintenance. Channels of distribution refer to the path goods take from producers to consumers and include intermediaries like wholesalers and retailers that break bulk, create assortments, and reduce transactions. Common channels involve manufacturers selling directly to consumers or retailers or using wholesalers as intermediaries.

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    Distribution & Retail Management

    Uploaded by

    Teneg82
    82 views9 pages
    Distribution involves a series of operations that move goods from manufacturers to consumers. It accounts for about a quarter of the price of consumer goods. The main objectives of distribution are to get the right goods to the right place at the right time at the lowest cost. The key activities include transportation, warehousing, order processing, and inventory maintenance. Channels of distribution refer to the path goods take from producers to consumers and include intermediaries like wholesalers and retailers that break bulk, create assortments, and reduce transactions. Common channels involve manufacturers selling directly to consumers or retailers or using wholesalers as intermediaries.

    Original Description:

    Retail distribution system

    Original Title

    Retail 1

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    Distribution involves a series of operations that move goods from manufacturers to consumers. It accounts for about a quarter of the price of consumer goods. The main objectives of distribution are to get the right goods to the right place at the right time at the lowest cost. The key activities include transportation, warehousing, order processing, and inventory maintenance. Channels of distribution refer to the path goods take from producers to consumers and include intermediaries like wholesalers and retailers that break bulk, create assortments, and reduce transactions. Common channels involve manufacturers selling directly to consumers or retailers or using wholesalers as intermediaries.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    82 views9 pages

    Distribution & Retail Management

    Uploaded by

    Teneg82
    Distribution involves a series of operations that move goods from manufacturers to consumers. It accounts for about a quarter of the price of consumer goods. The main objectives of distribution are to get the right goods to the right place at the right time at the lowest cost. The key activities include transportation, warehousing, order processing, and inventory maintenance. Channels of distribution refer to the path goods take from producers to consumers and include intermediaries like wholesalers and retailers that break bulk, create assortments, and reduce transactions. Common channels involve manufacturers selling directly to consumers or retailers or using wholesalers as intermediaries.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    Distribution & Retail

    Management
    DISTRIBUTION

    Distribution can be defined as an operation, or a series of


    operations, which physically bring goods manufactured or
    produced by any particular manufacturer into the hands of
    the final consumer or user.

    Distribution is an integral part of marketing. Its function is to


    distribute or sub-divide the total product of a manufacturer on a
    geographical basis to various specific markets.

    Distribution creates time utility and space utility.

    Distribution is estimated to account for one-quarter of the price


    of the consumer goods people buy.
    DISTRIBUTION

    Market Logistics Objectives

    “Getting the right goods at the right place at the right time..
    .. At the least cost”.
    DISTRIBUTION
    Market Logistics

    Primary Activities Secondary Activities


    1. Transportation 5. Product Packaging

    2. Warehousing 6. Product Handling

    3. Order Processing 7. Acquisition

    4. Inventory Maintenance 8. Product Scheduling

    9. Information
    Maintenance
    CHANNELS OF DISTRIBUTION

    A Distribution channel is a chain of people and/ or entities


    involved in the transfer of title or ownership, as the
    product moves from the producer to the end-consumer.

    A path through which goods and services flow in one direction


    (from vendor to the consumer), and the payments generated
    by them that flow in the opposite direction (from consumer to
    the vendor).

    The structure of intra-company organisation units and extra-


    company agents, dealers, wholesalers and retailers through
    which a commodity, product or service is marketed.
    - The American Marketing Association
    CHANNELS OF DISTRIBUTION
    Retailer : The retail outlet distributes the product to the
    consumer / end-user, for personal, non-business use.
    Maintains limited stock of goods for sale.

    Wholesaler : Performs all activities involved in selling goods


    and services to those who buy for re-sale or business use.
    Maintains large stocks of goods for distribution.

    Agent : Is usually a direct representative of the company in the


    market. He approaches customers, negotiates and closes deals
    with customers on behalf of the company. Agents rarely stock
    goods with themselves.

    C&FAs/ CSAs : This category is also known as ‘Facilitators’.


    C&FAs (Carrying & Forwarding Agents) carry the goods
    physically but do not pay for it, while CSAs (Consignment
    Selling Agents) act as C&FA but also perform the selling
    function and remit the collections to the company.
    CHANNELS OF DISTRIBUTION
    PHYSICAL DISTRIBUTION FUNCTIONS :

    1. Breaking Bulk : Buying in large quantities and selling in small


    quantities - Reduces costs for both manufacturers as well as buyers.

    2. Creating Bulk : Intermediary works as an ‘assembler’. Buys in


    small quantities and accumulates bulk for the buyer.
    3. Creating Assortments : Creation of assortments of merchandise
    that would otherwise not be available. Offers a variety of
    products to the buyer.
    4. Reducing transactions : The no. of necessary transactions to
    accomplish the exchanges necessary for economic activity is
    brought down substantially.

    5. Transportation and storage : Intermediaries carry goods and also


    provide regional and local storage.
    CHANNELS OF DISTRIBUTION

    Manufacturer/ Producer

    Wholesaler

    Manufacturer’s Manufacturer’s
    Retailer
    Chain Stores Branch Offices

    Consumer
    CHANNELS OF DISTRIBUTION

    TYPICAL CHANNELS OF DISTRIBUTION


    For Consumer Goods & Services :

    Manufacturer Consumer

    Manufacturer Retailer Consumer

    Manufacturer Wholesaler Retailer Consumer

    Manufacturer Agent Consumer

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