Evaluate the Distribution Systems in Delivering Goods and Services for a Selected Organisation

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Explain the process of distributing goods through different channels from the manufacturer to the customer. (P2) Compare the methods used to distribute products and services. (M2) Evaluate the distribution systems in delivering goods and services for a selected organisation (D1) H&M Hennes & Mauritz AB (H&M) is a Swedish multinational retail-clothing company, known for its fast-fashion clothing for men, women, teenagers and children. H&M exists in 43 countries and as of 2011 employed around 94,000 people. The first store was opened on the high street of Vasteras, Sweden in 1947. It had 2,325 stores at end of 2011 and 2,629 stores at end of August 2012. It is ranked the second largest global clothing retailer, just behind Spain-based Inditex (parent company of ZARA), and leads over third largest global clothing retailer, United States based GAP Inc. Centra is a Northern Ireland Based, independent company that sells refrigerated foods and other foodstuffs. It only exists in Northern Ireland and doesn’t employ anywhere near as many staff as H&M. They receive goods from all over Europe and the UK to sell to the customer. Both company’s sell very different products as Centra have to sell refrigerated goods all across Europe while H&M sell clothes which are not perishable goods unlike Centras. Distribution is very important to H&M and Centra as it is the movement of goods and services from the source through a distribution channel, right up to the final customer and the movement of payment goes in the opposite direction right up to the original producer or supplier. Distribution Channels: Traditional: A wholesaler typically buys and stores large quantities of several producers’ goods and then breaks into bulk deliveries to supply retailers with smaller quantities. For small retailers with limited order quantities, the use of

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