Distribution Flashcards
Define distribution
the movement of goods and services from a producer, through various channels, to the final consumers.
Define the distribution chain
involves getting the product to the consumer in a convenient way.
Give an example of the distribution chain
Producer - Wholesaler - Retailer - Consumer
Who is the producer?
the person who converts raw materials into finished products/services.
Who is the wholesaler?
the middle man who buys goods from the producer in large quantities and sells them in smaller quantities to the retailer.
What are the functions of a wholesale?
Risk Bearing, Warehousing, Breaking Bulk & Transport
What is Risk Bearing?
when wholesalers take the risk of storing goods that may not be wanted by customers or that has become obsolete, out of fashion, or prices fall.
What is warehousing?
when wholesalers store good and keeps them until they are required by the retailers ensuring them a ready supply of goods when needed.
What is Breaking Bulk?
when wholesalers buy products in large quantities and repackage them in smaller quantities and sell them to retailers.
What is transport?
when wholesalers pick up good from the manufacturer and at time deliver goods to the retailer’s premises in their own vehicles
Who is a retailer?
a business that buys from the manufacturer or the wholesaler and sells directly to the consumer
What are the functions of Retailers?
Breaking Bulk, Providing useful information gained from customers about the products, providing presales and aftersales services & Make goods and services available to consumers in the quantities that they want
What are presales?
checking the appliances that they have before they are working before they are sold
What are some methods of Retailing/Distribution outlets?
Shop, Department stores, mail order,
What are shops?
small retail outlets that sell a variety of goods
