Distribution models in the supply chain

Abstract

In the supply chain, distribution is the major driver of the chain’s overall profitability because it directly affects costs and customer experience. There are two issues to consider when desiging a distribution model from the manufacture to the final customer, which are: whether the product is delivered to the place that the customer requests or the custormer comes to buy the product from a distributor; or whether the product is distributed through intermediaries? Based on the combination of the options for these two issues, there will be 6 following distribution models.