Question

Why do businesses establish supply and distribution channel networks?

Answer 1

BUSINESS ESTABLISH. Supply AND DISTRIBUTION CHANNEL NETWORKS BECAUSE II ir HELPS TO INCREASE EFFICIENCY - Supply chain helps the firm to increno the efficiency, öfe logistic servie- ce by reducing inventory and movement of goods efficiently from fprom producers Henes To REDUCE NUMBER OF TRANSACTZONS • Distribution channels helps to reduce numbes of transactions required to obtain a particulas product directly from manufact- vrees. The intermediaries helps to fix up this problem Loody HELPS IN SMOOTH FLow Of Goods - Distribution channel helps in the smooth flow of movement of goods as the intermediaries helps in sorting the goods accor- ding to the customer markets. etc along with helping the to find appropriate customers, Lius HELPS TO REDUCE OPERATING COST Supply channel management helps. the firm to reduce its operats g i costs by reducing its cost - of production, decrease in purchasing

cost etc if managed properly. tu HELPS TO IMPROVE CUSTOMER SERVICE proped supply chain management helps the firm to improve its customer service by providing goods and services on time and at perfectly accurate way of right quantity and quality tvij HELPS TO REDUCE WAREHOUSING COSTS Distribution channels helps the fisza to reduce. itsevarehousing costs because it is impossible to store las qe production as it requires huge cost of storing therefore the intermediaries helps by storing goods in his... own warehouses at their own risks and thus shares the load of the firan. & HELPS TO INCREASE SALES The distribution channel help to increase the sales for the firm as the intermediaries takes different promotional activities a to enhance the sales of the firm, they also advertisene pro saotes o bhand value aten Un