What is a Distribution Channel?

A distribution channel is the chain through which a product moves from producer to end user. Depending on the setup it can run through distributors, wholesalers and retailers, or go direct from producer to consumer.

Members of a distribution channel

• Producer: makes the goods or services.
• Agent: handles sales or title transfer on the producer's behalf.
• Wholesaler: buys in bulk and sells on to retailers.
• Retailer: sells in small quantities to the public.
• End user: the final buyer.

Distribution channels and transport

Every step in a distribution channel needs physical delivery, the outbound logistics that carry goods to the next tier. Shorter or direct channels change the transport pattern, usually more and smaller deliveries, rather than removing it.

Whatever the channel, the road leg has to be planned and costed. In the Planner Module from IMPARGO deliveries are planned with route, per-country toll and cost before dispatch.