Unit 29 Understanding Retail in
Business
Klein Luyindula
P2
Explain the process of distributing goods through different channels from the
manufacturer to the customer
Distribution channels is a chain of businesses or intermediaries through which a good
or service passes until it reaches the final buyer or the end consumer. Distribution
channels can include wholesalers, retailers, distributors and even the internet.
The process of distribution channel is the network in which products move from the
producer or manufacturer to consumer or users. The distribution channel comprises
of manufacturers, consumers, selling agents and retailers these are known as
intermediaries.
Manufacturer Consumer
Manufacturer Wholesaler Consumer
Manufacturer Wholesaler Retailer Consumer
Manufacturer Wholesaler Agent Retailer Consumer
The distribution process is important with getting a product or service to the right
places at the right time. Taking into the consideration is all the need for profit and
efficiency. If a consumer has purchased a product, they either receive it from a
business, retailer or through a wholesaler this method defines the distribution
channel. There are many ways in which goods can be distributed to right towards the
customers as you can see above, I have listed 4 different tables where show the cycle
in which products are delivered with the customer being the final destination. These
can also be called direct channel, retail channel and wholesaler channel.
A traditional supply chain framework
-The traditional supply chain framework process involves taking raw materials and
making a physical product which is then transferred to customers. There are several
steps in this supply chain process which includes gathering of raw materials, acquiring
material's, manufacturing, distributing, selling to the customer.
Transport and shipping methods
-The transportation concerns the movement of products from a source, examples
include such as a plant, factory or workshop to a destination such as warehouses,
customer or retail store. The original goal for a business is to minimize transportation
costs/fees while being able to meet the purchasers demands for their products.
, Unit 29 Understanding Retail in
Business
Klein Luyindula
-The shipping methods are based on the rates and services that the consumers can
choose from at the checkout. they're often based on the carriers you that the business
works with and helps determine what the purchasers pay for shipping will be and how
quickly they will receive their purchase. Examples of shipping methods can include Truck
Air, Rail freight, UPS and FEDEX.
Sourcing products from the UK & internationally
-Sourcing products overseas refers to a business purchasing products or services from
manufacturers, suppliers that are located outside of the businesses home country. An
example of this could be a car mechanic ordering a car piece from a different country so
they can repair a damaged vehicle. Sourcing products from the UK is an easier method
for specific business in the within the UK region as sourcing products has quicker
logistics and will arrive in a shorter time to the market for example the majority of
Sainsburys fresh vegetables come from nearby farms who suppliers them with fruits and
veg are reasonable prices.
Suppliers
-Suppliers are companies that provide goods or services that a company or businesses
requires when producing its products or achieving its aims. The role of the supplier is to
provide high-quality products from a manufacturer at a good price to a distributor or
retailer for resale.
Distributors, also known as wholesalers
- The role of the distributor is to find a wholesaler who will resale their products. A
wholesaler works more closely with retailers to match their needs through purchasing
products in bulk at a reasonable price a key example of wholesalers would be Costco as
the majority of their products are sold in bulk.
Logistics process
-Logistics process is to find the best solution for the manufacturing and distributing of
goods by considering how the market uses these products.as part of this process, a
company should always consider the location of a product and should review the various
factors associated with these locations. Examples of logistics processes can include order
fulfilment & warehousing.
Storage locations
-A storage location is a physical location which are typically used to store the stock of
raw materials, semi-finished products, finished products which are stored within a plant.
Multiple storage locations can be maintained based on the type of products and
temperatures examples of storage locations can be self-storage.
The use of ICT in the supply chain
Business
Klein Luyindula
P2
Explain the process of distributing goods through different channels from the
manufacturer to the customer
Distribution channels is a chain of businesses or intermediaries through which a good
or service passes until it reaches the final buyer or the end consumer. Distribution
channels can include wholesalers, retailers, distributors and even the internet.
The process of distribution channel is the network in which products move from the
producer or manufacturer to consumer or users. The distribution channel comprises
of manufacturers, consumers, selling agents and retailers these are known as
intermediaries.
Manufacturer Consumer
Manufacturer Wholesaler Consumer
Manufacturer Wholesaler Retailer Consumer
Manufacturer Wholesaler Agent Retailer Consumer
The distribution process is important with getting a product or service to the right
places at the right time. Taking into the consideration is all the need for profit and
efficiency. If a consumer has purchased a product, they either receive it from a
business, retailer or through a wholesaler this method defines the distribution
channel. There are many ways in which goods can be distributed to right towards the
customers as you can see above, I have listed 4 different tables where show the cycle
in which products are delivered with the customer being the final destination. These
can also be called direct channel, retail channel and wholesaler channel.
A traditional supply chain framework
-The traditional supply chain framework process involves taking raw materials and
making a physical product which is then transferred to customers. There are several
steps in this supply chain process which includes gathering of raw materials, acquiring
material's, manufacturing, distributing, selling to the customer.
Transport and shipping methods
-The transportation concerns the movement of products from a source, examples
include such as a plant, factory or workshop to a destination such as warehouses,
customer or retail store. The original goal for a business is to minimize transportation
costs/fees while being able to meet the purchasers demands for their products.
, Unit 29 Understanding Retail in
Business
Klein Luyindula
-The shipping methods are based on the rates and services that the consumers can
choose from at the checkout. they're often based on the carriers you that the business
works with and helps determine what the purchasers pay for shipping will be and how
quickly they will receive their purchase. Examples of shipping methods can include Truck
Air, Rail freight, UPS and FEDEX.
Sourcing products from the UK & internationally
-Sourcing products overseas refers to a business purchasing products or services from
manufacturers, suppliers that are located outside of the businesses home country. An
example of this could be a car mechanic ordering a car piece from a different country so
they can repair a damaged vehicle. Sourcing products from the UK is an easier method
for specific business in the within the UK region as sourcing products has quicker
logistics and will arrive in a shorter time to the market for example the majority of
Sainsburys fresh vegetables come from nearby farms who suppliers them with fruits and
veg are reasonable prices.
Suppliers
-Suppliers are companies that provide goods or services that a company or businesses
requires when producing its products or achieving its aims. The role of the supplier is to
provide high-quality products from a manufacturer at a good price to a distributor or
retailer for resale.
Distributors, also known as wholesalers
- The role of the distributor is to find a wholesaler who will resale their products. A
wholesaler works more closely with retailers to match their needs through purchasing
products in bulk at a reasonable price a key example of wholesalers would be Costco as
the majority of their products are sold in bulk.
Logistics process
-Logistics process is to find the best solution for the manufacturing and distributing of
goods by considering how the market uses these products.as part of this process, a
company should always consider the location of a product and should review the various
factors associated with these locations. Examples of logistics processes can include order
fulfilment & warehousing.
Storage locations
-A storage location is a physical location which are typically used to store the stock of
raw materials, semi-finished products, finished products which are stored within a plant.
Multiple storage locations can be maintained based on the type of products and
temperatures examples of storage locations can be self-storage.
The use of ICT in the supply chain
