Strategic Distribution Management Foundation

Description

    Distributors can be split into two categories based upon who they serve. First, retail distributors buy from wholesalers or manufacturers and sell products directly to consumers. In contrast wholesale merchant distributors buy from manufacturers and resell the products to retailers or other distributors. Which one is right for business will depend on your goals and experience. The distribution strategy refers to the strategy implemented by companies to reach as many potential customers as possible at the lowest usage cost. An effective strategy maximizes a company's revenue, but a poor and ill- planned can lead to a loss and even enable competitors to gain from it. Location is a crucial factor in determining distribution strategy. A strategic location can be different depending on the type of products and services. Additionally, it is connected to roads and ways to distribute products. Businesses located near harbors and rail trains, for example can use the track nearby.

  The location of inventory plays a crucial role in directing a company's distribution strategy. In addition, it is also important to supply management and warehouse management. One of the pivotal aspects that needs to be taken into account is transportation. Without reliable transportation, the product will never reach its target market in time. It may affect the quality of products, if it's not long-lasting products. To maintain the condition of products,  packaging of products must be considered as well. Distribution channel is a method used by companies to distribute products to customers. The channel is chosen by considering which one is the most effective and efficient.

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