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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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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. • Distinguish between the economic values added to products and services as they journey through the channel of distribution.
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.
Primary Sources • Food • Growers • Manufacturers • Processors • Beer, Wine, Distilled Spirits • Brewers • Winemakers • Distillers • Furniture, Fixtures, and Equipment (FFE) • The manufacturer
Food Intermediaries • Distributor • Specialty distributor • Full-line distributor • Broad-line distributor • Brokers • Manufacturer’s Representatives • Manufacturer’s Agents
Food Intermediaries (cont.) • Commissaries • Wholesale clubs • Cash-and-carry • Buying clubs or price clubs • Co-op
Beverage Alcohol Intermediaries • Importer-wholesalers • Distributors • Alcohol Beverage Commission (ABC)
FFE Intermediaries • Dealers • Brokers • Designers • Architects • Construction contractors • Distributors • Leasing companies
Services Sources • Few large national sources exist • Most are local • Franchisees of a national firm
Economic Values Added to Products • Time Value • Form Value • Place Value • Information Value • Supplier Services Value