Advantages And Disadvantage Of A Company's Control Of Goods Distribution Method

1360 Words6 Pages
Disadvantages:
1. The manufacturer company does not have any control over the of goods distribution method.
2. If the distributor company does not distribute the goods for any reason, the producer will be paralyzed due to the unity of the distribution channel.
3. The company's financing system is subject to the payment of a single source.
4. If the performance of the distribution system is not satisfactory to the manufacturer, the manufacturer company cannot demonstrate a proper and rapid response.
5. In the long-term, the distribution company will effectively determine the manufacturer's policy, and the manufacturer must comply with the distributor's decisions.
6. The repayment period of the cost of goods sold to large distribution companies
…show more content…
• The capillary distribution channel is one of a variety of distribution channels that performs this task in retail mode and aims to increase the number of customers who purchase goods and increase the level covered.
Statistical population, sampling method and sample size: The statistical population in this research is all the broadcast industry companies and the sample considered is Hafez broadcasting company. In the past few years, according to the statistics and reports of commerce department this company is among the top 100 companies in Iran with distributing more than 20 thousand tons of various types of basic goods and quotations, and freed at a constant rate in the country in particular in the year 2010.
• To conduct sampling, cluster sampling was used in this research. At first, five branch offices of Hafez broadcasting company were randomly selected, and then at the next stage, among the directors and sales and planning authorities, these branches were randomly being selected as research samples.
• Among of 100 distributed questionnaires between employees, 90 questionnaires that were fully answered were selected for

More about Advantages And Disadvantage Of A Company's Control Of Goods Distribution Method

Get Access