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The Diversity of Distribution Channels in the Retailing Industry

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Introduction

Introduction In this assignment I will be writing a report into 'The Diversity of Distribution Channels in the Retailing Industry', I will be looking a the following sectors; * Tesco * Amazon * Pets At Home The word distribution means to transfer goods from the manufacturer to "the user". Tesco Distribution Channels Without the Diversity of Distribution Channels in the Retailing Industry Tesco would have not survived in the world of business. An example of a distribution of milk in Tesco is: Distribution Process Distribution process means how the goods are transferred from one place to another * The Dairy farmers milks the cow * The milk goes to a Packaging factory * The Packaging factory packages the products for the supplier (Tesco). * Then it goes to the retailer which is Tesco * This is the final stage where it reaches the Customer The use of logistics in Tesco Logistics is the flow of goods between the tip of origin to the point of destination Logistics involves the mixing of transportation, warehousing, material-handling and packaging. Tesco use logistics to get the products form the warehouse to the stores, logistics companies that Tesco use are Stobart and the own brand. The logistics processes are: * ROAD * RAIL * WATER * AIR * PIPE Tesco manly use road and air to transport the goods on time, Retail control of the supply chain Tesco sells the own brand with other known brands so that they can control the supply chain. By selling different brands, this will help Tesco sell more of the brands because when customers sees a well known cornflakes brand at an expensive price but sees a Tesco brand at a cheaper price the they will more likely go for the Tesco brand because the will have a choice of picking a expensive brand or a premium one. ...read more.

Middle

chain Amazon does not have their own brand , they sell many brands, they sell well known brands and less known brands so customers can have a choice of buying the same product but different brands, by Amazon doing this they are able to sell more because the customers will have verity of choice between the brands. Provision of products enhancing functions Amazon does provision of products in three ways which are * Storage * Transport, * After sales service Transportation is so important to Amazon because if there is no mode of transport Amazon is not able to send their goods to their customers for this reason transportation is vital to Amazon. Amazons keeps the goods in a warehouse which is close to motorways for reason that when an order is placed they are able to send it straight away without time being wasted. Amazon offer after sales service to all its customers that buy electrical goods for the reason that every retail shop offers offer after sales service to is customers and also to satisfy the customer's needs. Supply chain For Amazon to have a good supply chain Amazon must have the following categories: * Offer up-to-date products meaning that Amazon should have latest gadgets like if the new iphone comes out Amazon must have it * Improve choice meaning that Amazon should have Varity of products and goods for the customer to choice * Improve availability of stock meaning that Amazon should have many well known products in the warehouse so if a customer wants to by a product it should be in stock * Reduce stock levels meaning that Amazon should sell the good as quick as possible so that they can get new goods in the warehouse Sourcing from UK ...read more.

Conclusion

sourcing international is that it is difficult and expensive, but their advantage of sourcing from the UK is that it is cheap and easy to monitor the goods. Suppliers There are many suppliers of Pets at home i will only mention few they are: * Pedigree * Bakery * Aquarian Pets at Home rely on suppliers for the following reasons: * Reputation * Brand Name AND Image * Price and payment terms * Reliability and support Distributor Distributors are companies that work on behalf of international company's that supplies goods to Pets at Home. Logistics process There are 5 logistics process which are * Air * Water * Road * Rail * Pipe With these procedures merchandise are able to be transported in Europe and globally, There are some organisations that use RORO ferries, piggyback systems and euro channel tunnel. Pets at Home generally use road to transport the merchandise to its customers. Storage location Are very important to Pets at home for the reason that they sell large products, so these products are stored in Warehouses. Using ICT in the supply chain IT is very important to Pets at Home because without IT customers are not able to place orders, Pets at Home use IT to: * To receive customer orders * To communicate with the customers through email * To send orders to customers * Sharing with trading partners * Electronic reordering * Consumer information systems Distribution of e-tail products and services Distribution of e-tail products and services is meant by online shopping, it is very simply and does not require any staff. The advantage is that it is self service and customers can make orders at the comfort of the home . ?? ?? ?? ?? Said Ali P2 Unit 41 1 ...read more.

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