Explain how a manufacturer
Solution
Distribution involves getting the right products to the right people at the right time, and can take
a number of forms:
Zero level. The distribution channel is short and the manufacturer/producer sells directly to the
final customer. (For example, web sales or through own retail outlet).
One level. A manufacturer/producer deals with retailers who in turn act as intermediaries by
dealing with the final customers. (For example, phone manufacturer which sells to phone
wholesalers which sell to the public).
Two level. Where the supply chain is further extended, wholesalers become involved and there
are several intermediaries between the manufacturer/producer and the ultimate customer. (For
example, the extended chain involved in sales of items of clothing).
A manufacturer