STUDENTS' CORNER - 158
Distribution takes care of delivery of
products ordered.
Distribution connects the producer of
the product and the consumer of the product.
Without the consumer, no business is possible and in a way, he decides
the volume of the business including the other features like design and
packaging. Consumer is the king of the market. Of course, between the producer
of the product and the consumer, there are many intermediaries who are
inevitable in the channel of distribution.
Distribution to be effective must
deliver goods to all stakeholders in right time, in the right place and in the
right quantity without any damage to the goods.
Delivering the goods in right time
brings in many advantages. First of all, the customer is satisfied that he has
received the goods in right time in the sense that his need for it can be
fulfilled as he wished. Additionally, it reinforces the brand image of the
company because it makes the customer feel that the company has responded
correctly to the customer since it values the customer.
Nothing damages the name of the company
than a delivery of goods in a wrong place. And no blame should be laid at the
door of the customer at any cost, generally. Verification of the address is a
valid measure because the place is the final destination in the journey of the
product.
So also the right quantity: Quantity is
not just the number but it also includes correct packaging. Very often, a good
packaging leaves a good impression on the mind of the customer.
Distribution has some more tangible
benefits. It creates job opportunities. It is said in distribution is involved
a huge number of graduates and even post-graduates in international food
delivering companies like Zomato. In catering domain, the distribution of food
items ordered under home-delivery mode has been gaining popularity which means
business for the catering organisation is on the increase. Flipkart and Amazon
are reputed examples that solely depend on the efficient supply chain which
functions effectively in distribution.
As for the types of distribution, there
are two major types of distribution: Direct and Indirect Distribution.
As the term itself indicates, in direct
distribution, the manufacturer sells the products directly to the customers. Of
course, initially, establishing effective direct distribution may require some
additional investment in terms of, say, warehouses, transport and also delivery
staff. But once this direct channel of distribution is established, it is
likely to prove less costly.
Though direct distribution may prove
challenging on a large scale, it helps establish reliable connection with the
customers which is vitally significant for any business enterprise.
In Indirect
Distribution, there will be intermediaries and it implies that a careful
selection must be exercised in choosing intermediaries. And it increases; it
has to, the cost to the customers.
Having
seen the basic points in the drivers of supply chain, we shall move on to focus
on customer and the environment.
