Product Distribution Systems

          As products move from factories to retail stores, they follow various routes called channels of distribution. We already noted that our transportation system is essential in distributing products. It's easy to see that factories must move products to wholesalers, who move them to retailers, who move them to final consumers. This is a well-known channel of distribution. But there are also many other intermediaries, or middlemen, involved in the distribution process for particular products. Some take title to merchandise, while others perform the distribution function without actually purchasing products. Some distributors supply services to retailers, while others supply only products. The millions of retailers in our country look to these sources to buy their products. They compare the products, prices, services, and quality of suppliers in the distribution system. We shall investigate the details of this process.