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Production distribution in business is 1 of 4 ingredients of the marketing mix. A set of organizations or one organization that is involved in the development of making a service or product available for consumption or use by a business or consumer user. Additional components of the marketing mix include promotion, pricing and product.Distribution ChannelsIn the chain management of Logistics & Supply a very important component is that of distribution. In supply chain management, distribution is the circulation of goods from one business to the next which can come about by retailer to end customer, supplier to retailer or factory to supplier. Distribution in supply chain is identified as a chain of intermediaries, with each one passing a product down the chain towards the corresponding organization before reaching the end-user or consumer. This process is known as the channel or distribution chain. Each of the chains elements has specific needs which must be taken into account by the producer in addition to the end user.
Channels: There are various alternative channels that are available and include:1
- Individual that sells to retailers known as a distributor.
- Individuals that sell to end customers are known as a retailers
- Advertisements are mostly utilized for consumption goods.
With distribution channels, restrictions may not include physical products that go from producer to consumer some segments because indirect and direct channels may be utilized. For example, services may be sold by hotels directly or through centralized reservation systems, airlines, tourist boards, tour operators, travel agents and more. The process of transfer here is services or products from producer to end-user or customer.