Distribution.

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Presentation transcript:

Distribution

Definition The total process of moving, handling, and storing goods on the way from the producer to the user. It includes transportation and storage. Middleman: A distributor serves as a middleman between the manufacturer and retailer.

‘Distribution chain' or the ‘Channel.' Products are passed through chains, channels before it finally reaches the consumer or end-user.

Channels Selling direct: mail order, Internet telephone sales Agent: sells direct on behalf of the producer Distributor (wholesaler), who sells to retailers Retailer : who sells to end customers

Transportation Freight AIR RAIL TRUCK

Problems: Insurance and Damage

10,000 containers fall overboard every year, mostly due to storms 10,000 containers fall overboard every year, mostly due to storms. Each 8-foot-by-40-foot container can carry up to 58,000 pounds of cargo. 29,000 bathtub toys packed in 20 giant containers that fell off a ship in January 1992.