3.2.1 Steps in the Distribution Channel
Completion requirements
Consider the steps in a fairly complex distribution channel.
An agent does not take physical possession of the products, nor does a sales office (if there is one). The products must be stored somewhere while the agent arranges for sales to wholesalers. During this time, the products likely are stored in a warehouse, which may be on the producer's site.
After the products are sold to a wholesaler, they are shipped to the wholesaler. Typically, the wholesaler takes physical possession of the products. The products must be moved to another storage facility until the wholesaler has arranged for sales to retailers.
After retailers have purchased the products, they are moved to the retailer's storage facility. This could be a warehouse or a store. Often, retailers have their own means of transportation to deliver products from their warehouses to their retail locations.
The transportation process may end here. In some cases, however, retailers provide home delivery on large products. This is common for large purchases such as furniture or major appliances.
An agent does not take physical possession of the products, nor does a sales office (if there is one). The products must be stored somewhere while the agent arranges for sales to wholesalers. During this time, the products likely are stored in a warehouse, which may be on the producer's site.
After the products are sold to a wholesaler, they are shipped to the wholesaler. Typically, the wholesaler takes physical possession of the products. The products must be moved to another storage facility until the wholesaler has arranged for sales to retailers.
After retailers have purchased the products, they are moved to the retailer's storage facility. This could be a warehouse or a store. Often, retailers have their own means of transportation to deliver products from their warehouses to their retail locations.
The transportation process may end here. In some cases, however, retailers provide home delivery on large products. This is common for large purchases such as furniture or major appliances.