I created a business for my class, and its a candy company that sells industrial candy from all over the world. One question asks to explain the channels or distribution and how my business will used these channels to receive goods or services. In my textbook, it says distribution channels for consumer products and services, and distribution channels for industrial products and services. They both have Channel that list Channel A Channel B Channel C, and so fourth.
Since my company sells foreign candy, would I use the distribution channel for industrial products and services?
In the context of your candy company, it seems that you would fall under the distribution channel for consumer products and services, rather than the distribution channel for industrial products and services. Despite selling industrial candy from all over the world, your target customers are consumers who are purchasing the candy for personal consumption.
To further explain the concept of distribution channels, let's examine how your business would utilize them to receive goods or services.
1. Supplier network: As a candy company, you will need to establish relationships with suppliers who can provide you with a variety of foreign candies. These suppliers might include manufacturers, importers, wholesalers, or distributors who specialize in candy from different countries. You would use the distribution channel to connect with these suppliers and arrange the procurement of the desired candies.
2. Order placement: Once you have identified your suppliers, you will need to place orders for specific quantities and types of candy. This can be done through various channels such as phone, email, or online platforms specifically designed for business-to-business transactions.
3. Warehousing and logistics: After your orders are placed, the candy will need to be delivered to your business for storage. Depending on the volume of candy you plan to stock, you may require a warehouse or dedicated storage space. You will also need to organize logistics, such as transportation and shipping, to ensure the candy reaches your premises safely and in a timely manner.
4. Inventory management: Once the candy is in your possession, you will need to manage your inventory effectively. This involves monitoring stock levels, tracking expiration dates (if applicable), and ensuring the candies are properly stored to maintain their quality and freshness.
5. Retail distribution: Finally, your business will distribute the candy to customers through various sales channels. This may include selling directly to consumers through a physical store or an online platform, or supplying your candies to other retailers, such as supermarkets, specialty stores, or convenience stores.
By understanding and utilizing these distribution channels for consumer products and services, you will be able to effectively acquire and deliver foreign candies to your target customers.