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

In today’s market businesses that are distributing good globally and nationally and therefore have to consider that the cost of distribution can depend on the method of distribution they use, there are cheaper methods of distribution available to all businesses such as by road or by rail, these are most commonly used because they are the most cost affective method’s but by using a cheaper method it does mean that the transportation is going to be slower. Compared to other methods that are expensive such as by air and container they even have their own advantages such as travelling by air is very quick process and distributing by container gives goods the best security available. There is other cost affective methods such as by sea but gain this a long and slow process. In the distribution process there are three main intermediaries these three are known as the retailer, wholesaler and the agent, these are between the organisation and the manufacturer. We will write a custom essay sample on Evaluate the Distribution Systems in Delivering Goods and Services for a Selected Organisation or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The retailer can actually be owned by the manufacturer who is actually making the product, wholesalers can be small cash and carry outlets or the full function wholesaler and the agent can be the manufacturer, retailer or wholesaler. Wholesalers trade in a method by buying large quantities of a product for example cigarettes and then sell them on in smaller quantities so they can reach a larger amount of clientele and therefore create better relations between businesses. This is a major advantage to any wholesaler because the more customers they sell too the more businesses they will be linking with create more business to business relationships, but this can be a disadvantage because they only have a certain amount of stock and they could lose business because they can’t supply to all small businesses. One of the major issues business face is that the availability of products but its not just the product that can affect availability the time, place and the quantity of goods can be the reason. Even though SuperGroup receive all manifest’s and quantities of their products, they cant always be certain they have the correct figure, the negative part of this is that they might have more items then they originally thought therefore a customer might see a product out of stock when really they have 3 left and they could then go to a competitor which is the worst outcome. SuperGroup are a bricks and mortar business but they sell a majority of their products online, they have two specific distribution channels for the products that they sell these are through retailers and eRetailers so they are either being prepared by SuperGroup themselves at their factory and are delivered by road to Cult their own retailer and other for example Bank and USC which is an advantage because this is a cost affective method and can be delivered all over the UK but it has an disadvantage that it is a slow method of distribution. SuperGroup’s final method of distribution is through their own eRetailer Cult, this method has advantages that they are send the product straight to customer and they can be paid before, but again this method has disadvantages too because delivering good individually to different addresses can be a slow and costly depending on the distance between delivery’s. In conclusion to this piece of work, there are different aspects to SuperGroup’s choice of distribution system to deliver their products, and they will have to choose the correct intermediaries that are going to be beneficial for their business, they each come with different types of advantages and disadvantages depending on the intermediaries the business uses.