Understanding Distribution Channels

What is a direct channel in distribution?

• A direct channel is a method of distributing products via online marketplaces.

• A direct channel involves selling through retailers and wholesalers.

• A direct channel refers to using third-party distributors to reach consumers.

• A direct channel in distribution is a method of selling products directly from the producer to the consumer.

What is an indirect channel in distribution?

• An indirect channel sells products directly to consumers.

• An indirect channel eliminates the need for intermediaries.

• An indirect channel is only used for online sales.

• An indirect channel in distribution uses intermediaries to sell products to consumers.

Name one advantage of using direct channels.

• Limited customer reach compared to intermediaries.

• Higher prices due to additional services.

• Lower costs by eliminating intermediaries.

• Increased complexity in distribution.

Name one disadvantage of using indirect channels.

• Increased brand visibility.

• Faster market entry.

• Loss of control over customer experience.

• Lower distribution costs.

What role do wholesalers play in the supply chain?

• Wholesalers are responsible for manufacturing products.

• Wholesalers only sell to end-users without involving retailers.

• Wholesalers facilitate the distribution of goods by buying in bulk and selling to retailers, thus bridging the gap between producers and consumers.

• Wholesalers produce goods directly for consumers.

How do wholesalers benefit manufacturers?

• Wholesalers eliminate the need for marketing by manufacturers.

• Wholesalers reduce production costs for manufacturers.

• Wholesalers take over the manufacturing process entirely.

• Wholesalers benefit manufacturers by increasing market reach, managing distribution, and allowing manufacturers to focus on production.

What is the chain of supply?

• The chain of supply refers to the financial transactions involved in a business.

• The chain of supply is the process of marketing a product to consumers.

• The chain of supply is the network of all entities involved in producing and delivering a product.

• The chain of supply is solely about the storage of products in warehouses.

List the main components of the supply chain.

• Transporters

• Suppliers, Manufacturers, Warehouses, Distribution Centers, Retailers, Customers

• Producers

• Retail Locations

What management strategies can improve distribution efficiency?

• Limit product variety

• Increase product prices

• Optimize inventory management, use technology for tracking, enhance supplier relationships, and streamline logistics.

• Reduce employee training

How can technology impact distribution management?

• Technology has no effect on distribution costs.

• Technology reduces the need for inventory management.

• Technology impacts distribution management by increasing efficiency, accuracy, and responsiveness.

• Technology complicates the supply chain process.