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Distribution Channels and Supply Chain Management. By: Tausaga Pauu. Distribution Channels and Supply Chain Management. Channels of Distribution – This refers to the chain of intermediaries a product passes through from producer to final consumer. Channel Strategy.
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Distribution Channels and Supply Chain Management By: Tausaga Pauu
Distribution Channels and Supply Chain Management • Channels of Distribution – This refers to the chain of intermediaries a product passes through from producer to final consumer.
Channel Strategy • In deciding on an appropriate channel strategy , a business must answer these questions; • Should the product be sold directly to the consumers? • Should the product be sold through retailers? • Where should the product be made available? • How much will it cost to keep the stock of products on store shelves on channel warehouses? • How much control does the business want to have over the marketing mix? • How will the distribution channel selected support the other components of the marketing mix?
Agent • - A business with the authority to act on behalf of another firm , to market it’s products
Supply Chain Management (SCM) • Managing the network of businesses that are involved in the provision of the products to the final consumers • Managing and coordinating all of the separate businesses involved in supplying a car or computer to the end consumer is a complex process that is now aided by specialized software. • Supply Chain Management can increase the efficiency of a firm’s supply chain by; - Reducing the total number of supplies , - Reducing the total number of supplies - Planning production to meet consumer demand - Ensuring adequate supplies are delivered on time , to retailer or other intermediaries.