RETAIL VS DISTRIBUTION
In every production process, distribution of goods is very vital, because if there is a defect in the distribution of goods, the production of the goods will just be likened to pouring water inside a basket, the effort put into producing that product, will be a waste and this is not the joy of any Manufacturer. The distribution process refers to a series of activities that take place between the time of production of goods and the time they reach the final consumers. The chain of activities includes handling, warehousing, packaging, transportation, and bulk breaking. The purpose of these activities is to bring goods to the consumer at a convenient time and place and to ensure the safe arrival of such goods.
Moreover, in distributing the goods there are intermediaries between the manufacture and the final consumer. They are the wholesalers, agents or brokers, and the retailers. All these intermediaries aid the efficient distribution of goods.
On the other hand, retail involves the sale of goods directly to a customer who intends to use the product. Retailers are the final link in the supply chain and they make the distribution of products easier. Retailing also involves displaying products, describing the characteristics and benefits of products, stocking products, processing payments, and getting the right product at the right price, to the right customer at the right time.
Furthermore, the retailer takes the goods to where it’s is convenient for the consumer to purchase it. For instance, some retailers do home deliveries. Retailers can also provide goods for their customers on credit, however, this is not common to all retailers because of the risk involved in that some customers might not payback.
The retailer also helps the manufacture in getting feedbacks or advise from the customers in the sense that they maintain close contact with the customers and through their relationship or conversation with the consumers of your product, they can easily get the appraisal and suggestions of the consumers on the products or goods and this will, in turn, help the manufacture to know what to adjust about the product. The retailer can relay this feedback to the manufacturer through the wholesaler or even directly to the manufacturer in situations where the retailer can contact the manufacturer.
Distribution is fundamental to a company’s sales, apart from distributing the products through the intermediaries, there can also be a direct distribution from the manufacturer to the consumer, however, this is more cumbersome and stressful, and it does not always work especially where the production is in large scale. Although it can work where production is on a small scale but right from time immemorial it has been less efficient.
Conclusively, retailing works hand in hand with distribution it aids the effective distribution of goods. Better put, retailers are the lens through which manufacturers see the true picture of how efficient their products are. It’s not the only means of distribution, it is very effective.