The length of the distribution channel as a factor of its efficiency

Abstract

Distribution network is a system of activities that provide transfer of products between producers and final users. It is also known as distribution channel, marketing channel, distribution chain, distribution pipeline, market chain and trade chain. This network has two or more partners, so it has to be coordinated in the direction of order fulfilment and satisfied demand. As a partnership business network, distribution channels are very important, due to their role in responding to customers' requests. Distribution channels could provide competitive advantage for all partners along the network, through shorter delivery lead time and higher product availability. Although the main purpose of distribution channels is providing continuous flows of products to customers, they should be designed to fill customer's demand with minimum total cost. Determining the right number of facilities and proper locations for distribution network is an essential issue for companies involved in the channel. The issue of distribution channel's length has become more interesting due to the parallel existence of two different trends. On one hand, there is tendency for reducing number of partners, facilities or stages of distribution channels, with the purpose of avoiding extra expenses, but on the other hand there is a necessity to involve more partners in distribution channel, because that is a way for providing greater market share. Configuration of distribution channels depends on many factors. These factors have internal or external character. Therefore, the fact that the distribution of the same products in different countries can be performed completely differently is not surprising at all. In this regard, the aim of this papers is to classify the factors that affect the length of the distribution channel. In addition, the paper will also indicate advantages as well disadvantages of both long and short distribution channels. The goal of the analysis of the factors and the way of designing distribution channels, in terms of its length, is to make an adequate decision for increasing efficiency of the distribution network.

Sustainability of Food Placement in Retailing during the COVID-19 Pandemic

“…Organizational measures imply the introduction of a new business concept based on the digitalization of all business activities and the shortening of the FSC [42,43]. This set of measures should include: (1) in the manufacturing sector, (a) implementation of modern IT solutions for better flow of information along the FSC such as IoT, biosensors, TT indicators, and RFID technology [44], (b) redirection of employees and business operations to work from home, (c) introduction of clear standards, supervision measures, and procedures for teleworking; (2) in the physical distribution sector, this means the transformation of the traditional FSC to electronic FSC with the expansion of electronic food placement (it should reach a share of 10-15% of total food placement); (3) in the wholesale sector the emphasis is on logistic support for the electronic placement of food in the form of special delivery services; and finally, (4) for the retail sector the promotion of electronic ordering and development of new electronic stores is the key.…”

How streamer channels influence luxury brand sales in live streaming commerce: an empirical study

“…The distribution channel is a system that provides services focusing on the transfer of products from their producers to final users (Andjelkovic and Radosavljevic, 2020). This process can be established directly or indirectly through one or more intermediaries (Pearce et al, 2004).…”

“…The distribution channel structure can be understood by length, breadth and density. The length of distribution channels means the number of intermediaries between the producer and the final purchaser in the distribution channel (Andjelkovic and Radosavljevic, 2020). The breadth of distribution channels refers to the number of distribution channels with different characteristics and types (Quinton and Harridge-March, 2006).…”

“…Furthermore, as a unique social media influencer, live streamers are also playing a role in distribution channels by serving as the intermediaries between luxury brands and customers (Andjelkovic and Radosavljevic, 2020). Previous studies have examined how to combine different distribution channels, such as online and offline channels (Nie et al, 2019), centralized and decentralized channels (Shi et al, 2020) and direct and indirect channels (Takata, 2019).…”

The Degree of Material Distribution on Environmental Outcomes in Selected Large-Scale Fabrics Manufacturing Firms in Lagos State, Nigeria

“…The proficiency of a channel can improve by including an intermediary. Notwithstanding, the quantity of intermediaries associated with the distribution within any production plant can influence the effectiveness of the whole channel (Andjelkovic & Radosavljevic, 2020). Therefore, an increase in intermediaries influence the appropriation costs.…”