Distribution channels are the pathways through which goods or services move from the producer to the end consumer. They are the networks of intermediaries, such as wholesalers, retailers, and distributors, that facilitate the movement and sale of products.
These channels play a crucial role in connecting producers with consumers, ensuring the availability of products in the right place, at the right time, and in the desired quantities.
Distribution channels help manage inventory, provide customer support, and enable efficient transportation and storage of goods. They may involve multiple stages, such as manufacturers selling to wholesalers, who then sell to retailers, and finally, the retailers selling to consumers. Effective management of distribution channels is essential for optimizing supply chain performance and meeting customer demands.