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
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Distribution channels are organized in several ways: conventional, vertical, horizontal and multichannel (Kern R. 2013). Some of these organizational methods are more structured than others. When a distribution channel deals with more than one independent producer, such as wholesalers and retailers, the channel is known as a conventional distribution channel. (Kern R. 2013) These channels are not normally known to be strong and typically don’t give the customer the quality of product that they deserve. In a vertical marketing system, the retailers, wholesalers and producers, join forces to create a unified front, promoting an individual product (Kern R. 2013). Vertical distribution channels are stronger than the conventional distribution channels because all of the companies involved carry some of the load of power. (Kern R. 2013) In a horizontal distribution channel, companies join up and combine all of their finances and resources, in order to take on more than one company or product (Kern R. 2013). A multichannel distribution channel is where a large corporation uses two or more marketing channels to better target their desired customer segments (Kern R.
If the company has a good reputation among consumers and its products is a popular choice, the customers become interested in the company’s ability to maintain stability of manufacturing.
A manufacturer of durable medical equipment would have to do what any product manufacturer would do. His distribution channels would depend on:
In consideration to the defaults the management had to appeal to their best customers. Happy Chips has no options to guarantee their safety from loss but have only one way to save it. Accepting the decisions made by Buy 4 Less firm as due to lack of their appropriateness, they got the customers angry to no despicable point. For the safety of their reformation, they would have to comply with the customers’ decision in accordance to the logistic analysis. The direct cost of labor is a basis for bigger losses in the Happy Chips as the work would be increased but wages decrease. The cost of production would rise while the demand of the products decreases due to broken customer relationship. Eventually the firm would experience bigger losses in general. The changes desired by Buy 4 Less should be adhered to by Happy Chips firm. The core reason as to why they should comply is because they might end up closing the firm taking into consideration that the head of logistics who had already submitted the analysis of the outcome.
Hence, manufacturing department should not interfere in the distribution department, and the latter should be experienced in distribution of products like Omnivue to the end customers.
In general, there are several methods for data collection and the different data collection methods provided its own advantages and disadvantages (Sekaran 2003, p. 223). For carrying out the data collection, the appropriate methods should be applied. In the research, the data collection could be done through the interview, for example, face-to-face and telephone interview. To collect the data by using interview technique, the questionnaire is commonly employed as the instrument for gathering data, the questionnaire could be able to distribute by mail or electronic mail. In addition, the data collection could be conducted by observation of individuals with or without audio or video recording. Before choosing the methods for data collection the expertise of the researcher, the degree of accuracy required, time and resources must be taken into consideration. Thus,
Turnbull (1986) recommend that a major weakness is a one-sided focus on the activities of the manufacturer together, that negotiate in the flow of goods and services to the customer