when it comes to distribution, what is the least expensive route when getting the product from manufacturer or farmer to the ultimate consumer

Question

Josephine Hodge

Business

8 July, 23:35

when it comes to distribution, what is the least expensive route when getting the product from manufacturer or farmer to the ultimate consumer

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Answers (1)

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Anabel · Answer 1

The least expensive route is to use "Direct distribution Channel"

Explanation:

There are two modes where a manufacturer or farmer can reach the product to the customer.

1. Direct channel: This enables the customer to directly buy from the manufacturers.

Example: Online purchase. In this the customer has direct access to the product and orders online. The manufacture has to find a source to deliver the goods to the customer.

Manufacturer should have warehouses, shipping centers, etc to deliver the product.

2. Indirect channel: Relies mainly on intermediaries to perform product distribution to the customers. This includes dealer, sub-dealer and many other to reach the product to the customer.