Alex Lote-Greensield
D1
In this assignment I will be evaluating the distribution system in
delivering goods and services in the business Tesco. I will outline
the structure of the retail industry and make judgements about
the role of distribution system in effective retailing. Effective
retailing is ensuring that your customers are always happy with
your products and service to guarantee you will be making money
and profit.
I will be evaluating the distribution system in Tesco. Tesco use the
distribution where the retailer, Tesco, buy straight from the
producer instead of going through a wholesaler. So the channel
they use is them is going straight to the supplier. Tesco have
distribution centres that their suppliers will deliver to and then
Tesco will deliver to each stores. This is very beneficial for the
business because it makes it easier and if this did not happen it
would be a very time consuming and difficult process. Tesco will
use this channel because the products are cheaper than going
through a wholesaler. So in a way it cuts out the ‘middle man’
which is making things easier and a lot more responsive. With
Tesco going straight to the producer and them having big buying
power they can negotiate more, discuss packaging and basically
have more to say in the trade. For example if Tesco wanted to
change the packaging of a product they would be able to have a
say and negotiate whether the producer will change their
packaging. If the producers refuse then Tesco will most likely stop
trading with them and that would affect the producer more than it
does Tesco because Tesco are the dominant party in the trade.
Whereas businesses such as Merrimans who use wholesalers
would not be able to discuss or negotiate with the producers
because they have no say in it if they do not buy straight from
them. But there is also negatives with going straight through the
producer. For example Tesco’s main competitors go direct to the
supplier as well so this could mean them competing on prices
and maybe losing out on the cheaper prices. That would not be
good Tesco because it means their competitors are gaining more
profit than them and Tesco are losing out on potential profit
D1
In this assignment I will be evaluating the distribution system in
delivering goods and services in the business Tesco. I will outline
the structure of the retail industry and make judgements about
the role of distribution system in effective retailing. Effective
retailing is ensuring that your customers are always happy with
your products and service to guarantee you will be making money
and profit.
I will be evaluating the distribution system in Tesco. Tesco use the
distribution where the retailer, Tesco, buy straight from the
producer instead of going through a wholesaler. So the channel
they use is them is going straight to the supplier. Tesco have
distribution centres that their suppliers will deliver to and then
Tesco will deliver to each stores. This is very beneficial for the
business because it makes it easier and if this did not happen it
would be a very time consuming and difficult process. Tesco will
use this channel because the products are cheaper than going
through a wholesaler. So in a way it cuts out the ‘middle man’
which is making things easier and a lot more responsive. With
Tesco going straight to the producer and them having big buying
power they can negotiate more, discuss packaging and basically
have more to say in the trade. For example if Tesco wanted to
change the packaging of a product they would be able to have a
say and negotiate whether the producer will change their
packaging. If the producers refuse then Tesco will most likely stop
trading with them and that would affect the producer more than it
does Tesco because Tesco are the dominant party in the trade.
Whereas businesses such as Merrimans who use wholesalers
would not be able to discuss or negotiate with the producers
because they have no say in it if they do not buy straight from
them. But there is also negatives with going straight through the
producer. For example Tesco’s main competitors go direct to the
supplier as well so this could mean them competing on prices
and maybe losing out on the cheaper prices. That would not be
good Tesco because it means their competitors are gaining more
profit than them and Tesco are losing out on potential profit
