Speak about advantages and disadvantages of different forms of distribution channels.

Speak about advantages and disadvantages of different forms of distribution channels. - student2.ru What do you think … ? Would you like to comment here? What are your views on? Speak about advantages and disadvantages of different forms of distribution channels. - student2.ru Asking for opinions
I’m convinced that … I feel quite sure that … It’s perfectly clear to me that … From financial point of view … I’m inclined to think that … I tend to favour the view that … Giving opinions
Speak about advantages and disadvantages of different forms of distribution channels. - student2.ru I’m in complete agreement. I couldn’t agree more. Precisely. Exactly! Agreement
Speak about advantages and disadvantages of different forms of distribution channels. - student2.ru I disagree completely. On the contrary. That’s not how I see it. I would not say that. Disagreement
Speak about advantages and disadvantages of different forms of distribution channels. - student2.ru I agree up to a point but … I see your point but … I suppose you are right but … Expressing reservations and doubts
Speak about advantages and disadvantages of different forms of distribution channels. - student2.ru I recommend that we should. I would suggest that we … Neutral suggestions
Speak about advantages and disadvantages of different forms of distribution channels. - student2.ru It might be a good idea to … Have you thought of ___ing … What about ___ ing … We could always … Tentative suggestions

Forms of Distribution Channels

Source Intermediaries or “Middlemen”   Advantages   Disadvantages
Distributors Buy and resell goods. Accept orders and payment. Assume warranty responsibility. May offer customer training.     Handle cultural, commercial, and technical problems. If delivery in United States, payment in dollars, standard terms. Simple handling of product defects.     Among the most costly sources; buyer pays both manufacturer’s and distributor’s profit and overhead. Probably foreign currency, L/C terms. (Letter of credit)  
Manufacturer’s Representatives Accept orders on behalf of a source; receive commission for the service. May provide technical and commercial support.       Handle cultural, commercial, and technical problems. Generally less expensive to use than a distributor.       Payment in foreign currency. L/C terms if a foreign rep. company. Bears no warranty liability; little use in dealing with defects.  
Brokers Bring together parties to a transaction for a fee. Services vary widely.     Least expensive intermediary. Wide range of services possible. May have wide contacts in the industry. Most willing to negotiate.     Least responsible for source or product performance, warranty. Probably little technical support. Foreign currency, L/C terms probable.  
Trading Companies Broad scope of activities from brokering, representation, distribution, program management.     Worldwide contacts, broadest scope of sources. Experience and capability. Few cultural or language problems.     Generally a costly alternative. Most prefer to trade in existing markets or to make a market for new product, not to deal in isolated inquiries. Because of their scale, most buyers have little leverage.

SUPPLEMENTARY UNIT

A new distribution model

This unit considers how supply chains will need to change in the future as a result of higher energy prices and concerns about carbon emissions.

Before you read

Discuss these questions.

1. What are some traditional strategies and aims of running supply chains?
2. What new factors will companies have to take into account when designing their supply chains?
3. In what ways can a company reduce transport costs in its supply chain?
4. Think of as many ways as possible to reduce carbon emissions in freight transport.

Reading

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