Distribution is usually one of the last components of a marketing mix. Distribution is basically the distribution of a product or service to the end user or consumer who needs it. This may be done directly by either the manufacturer or distributor or using various indirect channels such as intermediaries or third-party distributors. Distribution also includes sales of the product or service to retail outlets, or to customers and clients in general. Distribution involves numerous activities and therefore requires extensive planning.
Distribution may be separated into two broad categories: direct selling and indirect selling. Direct selling refers to the supply of products or services directly to the customer. Indirect selling occurs when products are sold indirectly through distributors, middlemen, or other intermediaries such as media representatives, franchisee organizations, or other suppliers. For example, pharmaceutical products are distributed by pharmacies through chain stores or through independent agents. Distribution and marketing of media products such as motion pictures, sound recordings, or television programs is referred to as advertising. Sales of food products such as groceries, snacks, and other consumables are also classified as distribution.
Distribution involves the movement of goods from the point of production to the point of sale. This usually happens on a large scale, but sometimes small distributors occasionally move goods on smaller scales. Disruptions include damage, theft, or damage due to adverse weather conditions. Goods may be distributed according to actuality or on a best guess basis. Actuality is used most often when assessing potential disruption, while guesswork is more frequently used in cases of minor interruptions caused by unforeseen events.
Distribution can be internal or external. Internal distribution is that done internally by retailers, stockists, or suppliers. External distribution refers to distribution conducted by retailers or companies outside the scope of an individual retailer’s business. Most often, external distribution involves retailers who import their own goods, but there are exceptions where third-party retailers provide distribution services.
Distribution involves the buying, packing, and distributing of goods. This process extends to the supply chain and includes the transport of finished goods from the manufacturer to the point of sale. Distribution channels can either be end-to-end or end-to-port. An end-to-end distribution channel delivers goods directly to the final consumers; this channel usually offers lower pricing compared to an inter-line distribution channel. On the other hand, an end-to-port channel regularly communicates with suppliers for goods that are not ready to ship immediately.
Distribution channel can affect a business in many ways. It has the potential to greatly affect the profitability of a company. If the company’s best customers do not purchase its goods, then the distributor will lose money. On the other hand, if consumers do not have access to the retailer’s product range, the retailer will experience higher losses because it is unable to sell its products to consumers.
Distribution management is crucial in supply chain management. Distribution management refers to the entire system of controlling resources in any type of operation. It is concerned with planning the transportation of goods and managing the stocks as well as the inventories and the flow of merchandise. There are many distribution management systems including point of sale systems, automated system for multiples, electronic data interchange systems and warehouse management software programs.
In order to be a successful distributor, the first thing you need to do is to determine what kind of distributor works best for your business. If you are selling clothes, shoes, jewelry, or toys to women, you might want to get into wholesale distribution. If you are selling computers, your business will be much more profitable if you get into computer wholesale distribution. Wholesale distribution allows distributors to sell their products to retailers who represent them. In order to make money, distributors need to be able to sell products in large quantities. With the help of a distribution channel, you can start earning money right away.