Importance of Distribution

Posted by TreasureOrbit on April 19th, 2021

Distribution is an important component of operations because a company cannot provide the best possible service unless it tracks and improves the relationship between manufacturers and customers. When there are bottlenecks in distribution, deliveries are delayed, customers, retailers, and suppliers are irritated, and trust is lost. To ensure that product distribution is truly successful, a continuous feedback loop must be implemented to ensure that everyone is satisfied with the process and that any improvements that can be made are implemented.

In the case of drop shipping and customers purchasing items online, merchants and customers do not have the opportunity to try the product before purchasing, so they must trust that the item will arrive exactly as depicted in the pictures and descriptions. This means that the distribution channel must be efficient in terms of providing responses and comments across the board.

Product Distribution Challenges

An efficient distribution channel can provide a competitive advantage to businesses. However, little research has been conducted on India's distribution channel structure, which is largely traditional and unique. The first section of the article provides an overview of the distribution and its importance, specifically their constituents and structure. The second section of the article reports on various challenges that Indian companies face in designing, building, and managing distribution channels on the ground.

Distribution channels are the paths that products take from producers and manufacturers to end-users. They are the paths that products, information, and money take. While some manufacturers deal with their customers directly, the majority of manufacturers use a distribution channel to get their products to consumers. Creating and maintaining a distribution channel necessitates considerable thought, effort, and investment. Channel margins and the cost of sales efforts in channel management can account for a sizable portion of total marketing costs. For businesses, an effective channel can be a source of strategic advantage. As a result, channel design and channel management are critical components of a company's competitiveness. Channels are also important from the standpoint of public policy because they employ a large number of people and are critical to the unhindered availability of food and other products to customers from all socioeconomic backgrounds. Despite the importance of channels, little research has been conducted on Indian distribution channels. As a result, this note and the accompanying round table presentations attempt to focus on distribution channels in India, particularly the challenges that Indian companies face in designing, constructing, and managing distribution channels. The goal is to identify significant challenges, assess the relevance of research findings, and create a roadmap for future channel-related research in India.

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