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Distribution
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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.
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‘Distribution chain' or the ‘Channel.'
Products are passed through chains, channels before it finally reaches the consumer or end-user.
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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
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Transportation Freight AIR RAIL TRUCK
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Problems: Insurance and Damage
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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.
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