Unit 29 P2 Business L3

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P2: Distribution of retail goods Distribution channels covers three sectors of industry, Primary (Raw Materials) Secondary (Manufacturing) and Tertiary (Services). Distribution centre is part of a logistics chain which include trucks delivering and picking items from the workhouse, movement of goods via: * air * road * train * ship Size of distribution centre is deepens of the business is serves. Businesses would have to plan how they are going to distribute their products or services to their existing customers in order for them to sell. Distribution channels would have to make sure that they give the product or service to the correct people and at the right time, it is very important that they are able to make their profits and efficiency when a customer purchase a product or a service. The customer may have bought it straight from the business or the producer of the product per through the retailer or the wholesaler. This specific way of purchasing is called channels. It is sensible to use more than one route of channels, this is so that the customers is able to make choice of which way they wish to purchase the product * Manufacture- produces goods and sells them. They also have a big factory where they turn raw material into finished goods. * Retailers- There may be owned by the manufactured or independent of the manufactured. They sell directly to the consumer to make a profit. Sometimes they buy products directly from the manufactures. * Wholesalers- These range from cash and carry outlets, which offer minimal service, to full function wholesalers, which provide credit, delivery and technical advice. * Jobber- these may represent the manufacturer, retailer or the wholesaler. Jobber obtain orders for manufacturers, retailer but they are not employed by the organisation. They are self-employed. Manufacturer

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