Chain of Distribution

Syllabus tag: KCSE | Business Studies | Form 3 | Topic 19 Chain of Distribution

Lesson objectives

By the end of this topic, you should be able to:

• Describe the channels through which goods reach consumers.
• State the roles played by middlemen in distribution.
• State the costs incurred by middlemen.
• Explain the factors considered when selecting a distribution channel.

Summary

A chain of distribution is the route goods follow from producer to consumer. Channels range from producer straight to consumer to long chains through agents, marketing boards, wholesalers and retailers. Middlemen bear real costs — transport, storage, finance, risk — and the correct question about them is not whether they add cost but whether they perform the work more cheaply than the alternatives.