The role of retailing in the distribution of goods and services
Introduction
In this report I will be viewing into and understanding the role of retailing in the distribution of goods and services. Describing the process of distributing goods through different channels from the manufacturer to the customers. I shall be looking into the different distribution channels for different types of retailers such as large multiple retailers and smaller independent retailers and also considering their characteristics. I shall lastly also be looking into the movement of goods through distribution channels and the logistics function in relation to retailer’s demand of goods and the different storage locations and methods of transportation.
Distribution channels are the chain of businesses or intermediates in which a good or service passes through until it reaches the end consumer, this can include wholesalers, retailers, distributors and even the internet. Channels are broken into direct and indirect forms, with a "direct" channel allowing the consumer to buy the good from the manufacturer and an "indirect" channel allowing the consumer to buy the good from a wholesaler. Direct channels are considered "shorter" than "indirect" ones.
Availability of products is all about having them at the right time, in the right place and the right amount of quantity. John Lewis need to know what time a specific product or service will be in most demand for example bikinis will be more in demand in the summer therefore you would know buy large quantity within the Christmas, winter period. Ensuring you know when and how much of certain products are needed is vital as this could have an impact on your distribution rates and therefore effecting the final outcome of sales.
Movement of goods from manufacturer to retailer to consumer
There are several possible distribution channels with varying characteristics. For most products it is sensible to use more than one of them....