distribution channels 4

Geographical locations have a huge impact on distribution channels. For example, If a place is located next to a river or ocean, distribution will likely be by ship. If the geographical area is huge with millions of people, it might be better to go through a network of distributors, wholesalers and retailers. If the area served is nearby, a firm can choose to supply direct to consumers. Another example would be if a firm were located on land versus surrounded by the sea. The relationship between distribution and logistics is conceived as a break even point at which goods/services/ideas and persons, can be conveyed from the place of production to the society/final consumers/customers. Depending on geographical distance, terrain and other geographical factors different distribution channel can be chosen. Sometimes the channels exist as direct to consumer, or to retailers, wholesalers, etc., which then supply the consumer. tough geographical terrain, such as mountains, might lead you to choose specialized distributors. For eg. Tea leaves in India are produced in difficult mountains and hence distribution of them can only be done by trucks and planes and not by trains. If the geographical area is huge with millions of people, it might be better to go through a network of distributors and wholesalers and retailers. If the area served is nearby, a firm can choose to supply direct to consumers.

Good evening class, geographical location can affect your selection of distribution channels in many ways. Location really does mean a lot. Some of the things geographical location are the value of the product you are able to obtain, the types of buyers, the quantity of what you are able to buy, and the buying habits of the customers in the area. These are just a few things that can affect your distribution channels. For instance, if you can only obtain a certain product from a particular manufacturer and that manufacturer is a great distance away. This can affect the costs of getting the product. Also what if there is a limit or a very high price to obtain the product from the manufacturer. All of these things and more have to be considered when choosing a geographical location. A business must out weigh the cost of doing business against the potential gain or loss of doing that business. There are times when being in the right place at the right time can pay off big and set the business up for success.