Question

discuss the impact of recent changes in the cost of different resources on distribution network structures? with examples

Answer 1

Discuss the impact of recent changes in the cost of different resources on distribution network structures? with examples

Distribution Network Structure(DNS): A distribution network structure is an interconnected group which provides storage facilities and transportation systems that receive stocks of goods and then delivers to customers or clients.

It basically acts as an intermediate medium from manufacture to the end user. Because most of the time manufacturers cannot reach their customers directly and few organizations wants to resale their products or create a demand they follow a network called DNS through which product demand can be created. It acts as a medium between manufacturer to customer to deliver products and services.

Organizations basically wants to implement different distribution network structures in order to gain market value for their products.basically it cost more even though the structure followed in order to reach their products to customers.

Instead of supplying the products directly to the customers these strategies are followed which really a cost impact on the manufacturer as well as the distribution network. The distribution network needs to design proper structure and follows with strategies to supply the particular product in the market to beat the competitors at the same time it has to earn proper market demand for the product or service.

In order to process all these networks the actual demand for the product or service will decrease and at the same time there are more competition in the market. If the particular selected distribution channel not delivered properly then there will be a great loss to the organization.It will impact the cost that spend on the distribution network for product launch.

It's really impact on the recent changes in the cost of different resources on distribution network structure.Its very important for a manufacturer to choose a proper channel to take their product to the market.Whether retail,wholesale or business to consumer. Choosing the best network make them less cost and more benefits.But the current network system brings so much impact on the distribution network.

Because of the increased competitors in the market the distribution networks fail to find the strategies and design proper structure for the product that reach the customer. There are more and more mediums that work and cost is really more for processing through proper channel.Finally its impact on the manufacturers.

Examples:

If a product for example a soap needs to reach a customer it has to run through different networks and reach the customer.The previous methods where a manufacturer reach suppliers and distributors to distribute or supply their product to the market.But the current distribution network structure collects the goods from the manufactures and stores in their warehouses and creates demand in the market with various network structures and finally supplies product to the customer.

There is more chance of failure of the product if it properly doesn't hit the market at the right time and cannot processed through proper distribution structure.It will be a great impact on the manufacturer because of the cost that invested in the distribution network to introduce their product in the market.