BUAD301 Lecture Notes - Lecture 11: Drop Shipping, Disintermediation, Knowledge Management
Document Summary
Types of distribution channels and wholesale intermediaries. Physical distribution: activities that move finished goods from manufacturers to final customers. Channel of distribution: series of firms/individuals that facilitate the movement of a product to a final customer. Provide time, place, ownership utility, logistics and/or physical distribution. Create efficiencies by reducing the number of transactions. Breaking bulk: purchase large amounts of goods from producers but sell only one or a few at a time to many different customers. Creating assortments: provide variety of products in one location so customers can conveniently buy many different items from one seller. Transportation/storage: retailers and other channels move goods from production point to other locations where they hold them until consumers want them. Facilitating functions: makes purchase process easier for customers/manufacturers. Risk taking: chance retailers take on loss of a product when they buy a product from a manufacturer b/c the product sits on the shelf b/c no customers want it.