Flows in the Channel of Distribution
Channel of Distribution
An example of the various channels of distribution that a manufacturer of grocery products might use. The manufacturer sells its products to wholesalers, chain stores, cooperatives, and the military. The wholesalers and coops service retail accounts. Accounts are serviced by a national sales force.
Product and Information Flows
Illustrates the product and information flows that take place in a channel. Remember the product flows take place only after information flows are initiated. In addition to product and information flows, payments for the merchandise and promotional inventories back in the channel. The quality and speed of the information flows determine the safety stock held at each level of the channel.