An example of a distribution network in manufacturing is when a company delivers products directly to end consumers using a direct sales strategy.
Understanding a Distribution Network
A distribution network is the path or route through which products or services flow from the point of origin (like a manufacturer) to the final customer. While these networks often involve various intermediaries like wholesalers, retailers, or distributors, they can also be more direct.
An Example from Manufacturing
According to Indeed.com, an example illustrating a distribution network in manufacturing is:
- Fox Industries is a small, local manufacturer.
- The company delivers its products directly to the end consumers.
- This is achieved by using a direct sales strategy.
- This approach is chosen instead of investing in intermediaries or third parties, often to save money.
This specific scenario shows a company managing the entire process from production to final delivery without relying on external distribution partners. The reference highlights this direct approach as a valid example of a distributor network within the manufacturing sector.
Summary Example:
| Company | Distribution Method | Destination | Reason Provided | Type of Network Example Given |
|---|---|---|---|---|
| Fox Industries | Direct Sales Strategy | End Consumers | To save money (vs. intermediaries) | Distributor Network |
Using a direct sales strategy means the manufacturer handles tasks like sales, logistics, and delivery itself, creating a streamlined, albeit potentially labor-intensive, path for their products to reach customers.
