CHAINS OF DISTRIBUTION

Chains of distribution is the sequence in which product, goods and services move from the manufacturer to the intended users or consumer in the right and perfect shape.

source

product moves from

manufacturer------ wholesaler------- retailer-------end users.

The number of middle men needed to deliver a product, goods or service will determine maybe the distribution channel will be long or short.

The length of the chains of distribution plays great role in the price of the goods and services since each intermediary will want to have his/her own gain and profit from the goods he distributed while a shorter chains reduces the price of the goods since getting to the direct consumer will not pass through many hands.

Knowledge of COD is important to an entrepreneur or company because it has a role to play in the price of their goods and the time the product will get to the consumer the shorter the chains the faster the goods get to the consumer. companies dealing with goods that has a short life spans need it goods getting to the consumer on time so that the consumer can have the best of the goods hence this type of company need a short distribution channel whereas company that deals with goods with longer life span may not need to disturb themselves with how long it takes for the good to get to their consumer has long as there is constant supply of there good to the consumer when they need it.

Important of chains of distribution

1 . it feels the gap between the producer of a goods and the final consumer of that product.
2 . it makes the product available at the needed time and place to the end users.
3 . helps company in achieving their marketing objectives
4 . makes goods available to a large group of people living in different areas
5 . COD assist in making market plans and strategies successful.
6 . the middle men can easily convince and influence buyers or end consumer to favour a particular product and it makers hence increased sales of that company
7 . It also enhance the transfer of new technology to the users.

Conclusion

Each company has to know it own distribution channel so as to know how long it goods takes to get to the consumer the goods is met for and also evaluate the shape of the goods when it finally get to their consumer.