The changing pattern of distribution

Abstract

Over the last decade the domestic distribution function has changed its internal and external appearance in order to meet the needs of the market, and enable companies to remain competitive in the market place. The object of this paper is threefold: firstly, to define what changes have occurred within the domestic distribution system; secondly, to identify the reasons for these changes; and thirdly, to forecast future developments within the marketing channel structure. Recently there have been considerable improvements in productivity within the distribution function leading to both absolute cost reductions and increases in customer service levels. Four main factors are considered to have influenced these changes. Firstly, improved management awareness in the role of the distribution functions. Secondly, a significant number of technical developments affecting the operating activities within the distribution function. Thirdly, structural change within the channel and co-operation between the independent channel memebers. Finally, the external channel environment has changed considerably as a result of urban renewal programmes and increasing Government constraints. The methods by which management could achieve change with the distribution function are identified and an outline is given of the problems which may be encountered in the process. It is forecast that planning activities will play an important role in developing the distribution system to meet the market needs of the future.