Question

Discuss various channels that are used in physical distribution of goods. Also explain the factors

influencing choice of channel.

23 Sep 2023
Answer :
Word Count : 686

The physical distribution of goods, also known as logistics or supply chain management, involves the movement and management of products from the manufacturer to the consumer. Various channels or routes can be utilized to achieve efficient distribution. Here are several common distribution channels along with factors influencing their selection:

1. Direct Sales:

  • In this channel, goods move directly from the manufacturer to the consumer without any intermediaries. It can involve online sales, company-owned retail stores, or factory outlets.
  • Factors Influencing Choice:
    • Control: Direct sales offer maximum control over the distribution process and customer interactions.
    • Customer Relationships: Direct channels enable direct engagement and relationship-building with customers.

2. Retailers:

  • Retailers purchase goods from manufacturers or wholesalers and sell them to consumers through physical stores or online platforms.
  • Factors Influencing Choice:
    • Market Presence: Retailers can provide broad market coverage, reaching a ___ ________ ________ _______ ______ ____.
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