ASDA's Distribution Systems

by pwincess2000 (student)

Nirah Younis

BTEC Unit 29

Understanding retailing

An evaluation will be drawn upon the distribution systems in delivering goods and services for a retailing organisation and the organisation I will consider is Asda.

Shipping arrangement

The retailer Asda has a shipping service to distribute their products directly to their customer so when a customer chooses a product online the product can be distributed by arranging a shipping service with Asda. However for the product to be distributed to ship the consumer has to pay the delivery cost which for Asda is £3.00 but they do have different prices depending on when they want it the consumers could choose to have it shipped the next day for extra charge or 4-5 working days.

They can even choose products from online and pay for it online and the products they have selected would get distributed to any asda retailer which they have chosen and then the consumers can go to the store and pick their products up.

There are a few advantages of shipping and these include, the service is easy and quick to use as consumers can just directly go on to the website Asda chose products they wish to purchase and then choose the shipment service, customers don’t have enough time to go to the supermarket so they can choose the shipping service . Also a positive element is the fact that it gets directly delivered to your door so you have no hassle.

The negative factors of shipping are the products may not get shipped on time, it costs more to get it shipped to the door. Also it takes time to choose the products you want online.

Use of intermediaries

There is a range of intermediaries which get included before a product reaches from the original producer to the final user. This includes -

Retailers operate outlets that have direct business with consumers the Retailers such as asda can be concluded in several ways:

Wholesalers

Wholesalers stock a variety of products from several producers. The duty of the wholesaler is ...

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The negative factors of shipping are the products may not get shipped on time, it costs more to get it shipped to the door. Also it takes time to choose the products you want online.

Use of intermediaries

There is a range of intermediaries which get included before a product reaches from the original producer to the final user. This includes -

Retailers operate outlets that have direct business with consumers the Retailers such as asda can be concluded in several ways:

Wholesalers

Wholesalers stock a variety of products from several producers. The duty of the wholesaler is to sell onto retailers. Wholesalers usually specialise in particular products. So in the organisation Asda makes most of its products by their own manufacturing company and they buy the rest from their suppliers.

Distributors or dealers have an identical role to wholesalers – that of taking products from producers and selling them on. Asda does not sell its products to other companies it directly sells them to their customers.

The distribution intermediaries help the retailer Asda to sell and promote its products on so that they customers get attracted by them and purchase them.

The advantages of intermediaries are they are connected as they offer logistic support so they make sure they have an effective physical distribution of goods. They look after the setting and storage of supplies at facilities which are nearer and easy to get to the consumer. Intermediaries even simplify manufacturer services and offer customer care services both before and after sales. They save cost and time saving so they might look after the stock for the retailer Asda. They also offer transactional functions so they can use their contacts to aid market coverage.

The disadvantages of intermediaries are they may lose customers, may lose control and they may lose customer ownership. Also they may have poor market management.

Use of international suppliers

The retailer asda has global suppliers and to become a supplier for asda they should meet the company’s expectations as Asda is a very high supermarket and all its products are good quality products. Once Asda has selected its suppliers the suppliers will supply their products to Asda by delivering it to them so where ever they are they would get it distributed to the retailer Asda. The retailer has suppliers that are located internationally so they get distributed to Asda from their and they make sure the product reaches in good condition.

Advantaged of suppliers –

They are reliable
Good quality products

Disadvantages of suppliers -

Takes time for the product to get delivered in store.
Costs
May loose customers because product might not be good.

Responsiveness to consumer needs

The retailer Asda listens and takes care of what their customer’s desire and what their need and requirements are so if they want the product to be distributed by for example the following day they would make sure they could get it delivered for that day. If they run out of a product which a customer buys on a daily basis they would make sure that the product gets available as soon as possible. They also make sure the product is delivered on time and it good quality. Also they make sure the product looks appealing and they even promote in a way which the customer would want to buy. They consider what their customer wants.

Advantages of Responsiveness to consumer needs -

Customers will keep an coming back
They would know that the company listens to them
It would benefit the company as they will have an increase in sales.
More people would come
The brand can be known as a good brand which takes care of what customers want.

Disadvantages of Responsiveness to consumer needs –

Customers wouldn’t come if they are not listening to them.
They would choose to shop with another brand if they don’t get what they want.

In conclusion from my point of view I think Asda has a good distribution system in delivery goods and services as they use many different ways to get the product distributed to their customers such as the shipping arrangement which they offer and they make sure the product gets delivered straight away and in good condition and they do this as they are concerned about their customers and Asda also wants their consumers to be pleased with them.