RESUMEN DISTRIBUTION SYSTEMS

JOS LUS ROS JIMNEZ

TECHNOLOGY IN LOGISTICS MANAGEMENT

NATIONAL LEARNING SERVICE SENA

NOVEMBER 2017
 WHAT IS A DISTRIBUTION SYSTEM OR CHANNEL

A distribution channel is the conduit that each company chooses to take its products to
the consumer in the most complete, efficient and economic way posible.

It is the route by which the products circulate from their creation in the origin to their
consumption or use in the final destination. It is formed by the set of people or
organizations that facilitate the circulation of the product until reaching the hands of the
consumer

CLASSIFICATION OF DISTRIBUTION CHANNELS

They can be classified according to length, the technology of sale and their form of
organization.

ACCORDING TO THE LENGTH OF THE DISTRIBUTION CHANNEL

Direct channel: consists of only two entities, manufacturer and final consumer. Often
used in the service sector, banking for example.

Short channel: consists of three levels, manufacturers, retailer and final consumer.
Often used when it comes to the sector where the offer is concentrated both at the
manufacturer and retailer level, when the retailer is a large company and the number of
manufacturers is not very high.
The large surfaces for example.

Canal largo: consists of four or more levels, manufacturer, wholesaler, retailer and
consumers. They tend to exist in sectors where supply and demand are very
fragmented.
 CLASSES OF INTERMEDIARIES

Wholesaler. The wholesale trade is an intermediary that is characterized by selling to

retailers, other wholesalers or manufacturers, but never to the consumer or end user.
Wholesalers can buy from a producer or manufacturer and also from other wholesalers.
In English it is known as "tier-2" channel, since the goods or services give "two jumps",
from wholesaler to retail or retail, and from there to the user or final consumer of the
product or service.

Retail or retailer The retailers or retailers are those that sell products to the final
consumer. They are the last link of the distribution channel, which is in contact with the
market. They are important because they can alter, slow or boost the marketing and
merchandising actions of manufacturers and wholesalers. They are able to influence the
sales and final results of the items they market. They are also known as "retailers" or
stores; They can be independent or associated in shopping malls, food galleries, markets.