In the previous article published, we covered the meanings behind a Distribution Center (which is different from a warehouse) and a Distribution System. In this article, we would be going further by addressing the terms of distribution intermediary, reverse distribution and distribution mix.
Exporting and Importing can often be an extremely complicated and mundane process as there are so many rules, regulations as well as countless number of procedures to adhere to. This, many a times, may require to prepare and submit documents for import and export. Usually, freight forwarders would prepare it for us, but it is also good to know for ourselves as to how to complete the relevant documents by understanding what the terms mean.
As such, in our new article series titled “Export Terms”, we would introduce you to all the various terms used in the international trade, be it through air, land or sea freight. We would roll out one related article on a regular basis, which would help you to get a comprehensive understanding as to the document preparation for the purpose of doing trade internationally
What is a Distribution Intermediary
A distribution intermediary is also known as a marketing intermediary. This is a process where a person that helps to connect the ultimate consumes with the producers through other intermediaries. Traditionally, intermediaries can be a retailer, distributor or a wholesaler. Distribution intermediaries also help to market the goods through promoting, selling and reselling the items. By the time the goods are finally made available to the customer, the goods are at a much higher price than it was with each intermediary.
What is Reverse Distribution
Reverse distribution is also commonly referred to reverse logistics, where the goods are actually returned to the suppliers and manufacturers. This could be due to a wide variety of reasons such as the goods cannot be sold as thy are outdated, are damaged or are simply sent back for the purpose of recycling. There are several organisations around the world that specialise in reverse distribution due to the existence of large amounts of unwanted goods which therefore, creates a demand. Medication are commonly being reverse distributed. Reverse distribution can also bring the overall costs of manufacturing to be a little lower as the goods are being recycled.
What is a Distribution Mix
A distribution mix is a combination of five different components, which make up the overall process of goods distribution. The distribution mix is as important in the field of logistics and supply chain just like how the marketing mix is important to marketers.
The distribution mix consists of communications, transport, inventory, warehousing and packaging.
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