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Distribution Systems

3. Distribution Systems. You Should Be Able To:. Summarize the various distribution systems in the hospitality industry Differentiate sources’, intermediaries’, and retailers’ involvement in the supply chain.

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Distribution Systems

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  1. 3 Distribution Systems

  2. You Should Be Able To: • Summarize the various distribution systems in the hospitality industry • Differentiate sources’, intermediaries’, and retailers’ involvement in the supply chain. • Distinguish between the economic values added to products and services as they journey through the channel of distribution.

  3. Distribution System • There are approximately 945,000 foodservice operations and about 48,062 lodging facilities • A typical nonchain hospitality property uses about 10-12 suppliers; multi-unit uses 6-8.

  4. The Channel of Distribution

  5. Primary Sources • Food • Growers • Manufacturers • Processors • Beer, Wine, Distilled Spirits • Brewers • Winemakers • Distillers • Furniture, Fixtures, and Equipment (FFE) • The manufacturer

  6. Food Intermediaries • Distributor • Specialty distributor • Full-line distributor • Broad-line distributor • Brokers • Manufacturer’s Representatives • Manufacturer’s Agents

  7. Food Intermediaries (cont.) • Commissaries • Wholesale clubs • Cash-and-carry • Buying clubs or price clubs • Co-op

  8. Beverage Alcohol Intermediaries • Importer-wholesalers • Distributors • Alcohol Beverage Commission (ABC)

  9. FFE Intermediaries • Dealers • Brokers • Designers • Architects • Construction contractors • Distributors • Leasing companies

  10. Services Sources • Few large national sources exist • Most are local • Franchisees of a national firm

  11. Economic Values Added to Products • Time Value • Form Value • Place Value • Information Value • Supplier Services Value

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