Alternative Distribution Strategies for W-G-P: A Detailed Analysis

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Added on  2023/06/09

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This essay examines alternative distribution methods that W-G-P could consider for its Prevention and Support services, focusing on improving time efficiency, cost-effectiveness, and reducing channel complexity. The analysis highlights three primary alternatives: direct distribution, establishing a dealer or major distributor, and partnering with retailers. Direct distribution can be achieved through third-party suppliers and online platforms, mirroring strategies used by companies like Apple Inc., which reduces warehousing and transportation costs. Employing a local dealer can enhance market monitoring and customer accessibility, streamlining order processing and minimizing storage needs. Collaborating with retailers shifts the burden of storage costs and increases product availability, further reducing transportation expenses. Each strategy aims to optimize the distribution process, ensuring products reach customers efficiently and cost-effectively.
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DISTRIBUTION METHODS 1
DISTRIBUTION METHODS
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DISTRIBUTION METHODS 2
What alternative methods of distribution would W-G-P consider for Prevention and
Support?
Alternative distribution methods that the company has to consider must look into ways of
making the situation better from a different perspective. The first perspective is associated with
the time that it takes for the products to reach the intended customers. The second perspective is
associated with the costs that are involved in the distribution of goods to the customers. The third
perspective is associated with the complexity of the distribution channels (Madani et al. 2015).
The three essential alternatives for the distribution of the products of W-G-P are direct
distribution, the establishment of a dealer or a major distributor of the products of the company,
and a connection to the retailers.
Direct distribution can be exercised in two different ways, and each of the ways is aimed
at shortening the supply chain. The company can opt to use a supply chain that is also utilized by
Apple Inc., and this is the involvement of third-party suppliers and the internet. The internet is
widely used in the modern market supply chain. Customers are given choices to select the
specific products that they need and place orders (Donald, Bowersox, David, And Cooper, 2012).
The distribution method is one of the cheapest because it does not involve the resources of the
company when it comes to distributing the products. At the same time, there are no costs that are
involved in storing the products because once the product is signed off from the company’s main
warehouse, it is shipped directly to the customers. Other organizations that have a higher
capacity can place orders of the products of the company (Boulaksil and Belkora, 2017).
Distributing directly to the customers who consume the products in bulks saves the costs of
warehousing and also the costs of transport because the goods are transported in bulk at one
specific time.
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DISTRIBUTION METHODS 3
Having a dealer on the ground is also another strategy that the company should utilize.
The presence of a dealer helps in monitoring the situation of the market. When customers get to
know that a company has a dealer in a certain location, they are likely to approach the dealer
than look for the product from other stores. A dealer can choose to work based on placing orders,
and this means that the dealer acts as a link between the company and its customers. Working
based on placing orders is more convenient for the company because the products are directly
transported to the dealer (Arabnejad, Bubendorfer, and Ng, 2016). The fact that the customer has
already placed an order means that as soon as the products have been transported to the dealer,
the customer picks the products and that reduces time and cost of storing the goods in a
warehouse.
Co-working with retailers is also a good strategy. The retailers take the burden of the cost
of storing the goods. At the same time, if the products of the company are available in many
retail shops, the availability of the products is promoted. Retailers also help in the reduction of
the costs of transport. The reason behind it is because these are business persons who take the
products of the company in bulk, store them in their stores, and wait for the customers.
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DISTRIBUTION METHODS 4
References
Arabnejad, V., Bubendorfer, K. and Ng, B., 2016, October. Budget distribution strategies for
scientific workflow scheduling in commercial clouds. In 2016 IEEE 12th International
Conference on e-Science (e-Science) (pp. 137-146). IEEE.
Boulaksil, Y. and Belkora, M.J., 2017. Distribution Strategies toward Nanostores in Emerging
Markets: The Valencia Case. Interfaces, 47(6), pp.505-517.
Donald, J., Bowersox, C., David, J. And Cooper, M., 2012. Supply chain logistics management.
McGraw-Hill Education.
Madani, V., Das, R., Aminifar, F., McDonald, J., Venkata, S.S., Novosel, D., Bose, A. and
Shahidehpour, M., 2015. Distribution automation strategies challenges and opportunities in a
changing landscape. IEEE Transactions on Smart Grid, 6(4), pp.2157-2165.
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