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Geographicalb locationb mattersb inb differentb waysb whenb itb comesb tob distribution.b Whenb youb
thinkb ofb theb differentb functionsb andb what'sb bestb forb theb company,b web haveb tob takeb differentb
thingsb intob consideration.b Forb Transactionalb Functions,b youb wouldb wantb tob beb inb ab cityb area,b
placesb withb businessesb andb residencesb sob thatb youb canb promoteb andb sellb products.b Forb thisb
functionb youb wouldb likeb tob beb inb anb areab withb peopleb notb spreadb apart.b Logisticalb Functionb
youb willb wantb tob beb nearb highwaysb orb portsb simplyb tob assistb withb productb distribution.b Thisb
functionb isb moreb tob dealb withb productsb ratherb thanb customers.b Hereb youb wouldb likeb
somewhereb thatb hasb ab lotb ofb land.b Andb finalb isb facilitatingb function,b thisb oneb isb moreb ofb theb
middle.b Dealingb withb givingb productsb tob productb andb beingb availableb tob otherb businesses.b
Withb myb companyb havingb tob growb withinb healthb care,b theyb decidedb tob haveb theirb ownb
operationb facilityb andb distributionb centreb tob helpb centralizeb equipmentb andb productsb forb theb
hospital.b Thisb helpsb getb ridb ofb theb middlemanb anb operateb directlyb withb suppliersb andb
customers.b Geographicalb locationb canb affectb yourb business'b distributionb channelsb inb ab
numberb ofb differentb ways.b Oneb wayb isb thatb yourb geographicb locationb willb determineb whatb
suppliersb youb use.b Inb termsb ofb logistics,b theb goalb isb tob findb theb mostb costb effectiveb andb secureb
deliveryb methodb forb theb materialsb youb sourceb forb theb productionb ofb yourb product.b Itb isb
generallyb theb suppliersb whob areb localb tob theb productionb facilityb thatb winb theb jobb ofb supplyingb
materials.b Geographyb isb alsob importantb becauseb youb wantb tob strategicallyb locateb yourb
businessb nearestb tob yourb market.b Ifb yourb marketb isb quickb andb fastb loansb forb peopleb whob areb
desperate,b youb areb notb goingb tob wantb tob locateb inb ab rich,b affluentb neighborhood.b Ifb yourb
marketb isb farmersb whob willb wantb tob purchaseb yourb farmb gear,b you'reb notb goingb tob wantb tob
locateb yourselfb inb ab mega-city.
Lastly,b youb willb normallyb alwaysb wantb yourb channelb partnersb tob beb locatedb inb yourb market.b
Ifb youb useb distribution,b andb youb areb sellingb inb Chicago,b youb wantb yourb distributorsb tob beb
locatedb inb theb Chicago-landb area.
Yourb geographicalb locationb canb affectb howb youb selectb yourb channelb forb distribution.b Forb
exampleb ifb thereb isb ab placeb locatedb byb ab riverb orb ocean,b distributionb wouldb likelyb beb byb ship.b
Oneb hasb tob thinkb wellb regardingb theb locationb ofb theb areab theyb willb beb usingb tob produceb
merchandise.b Theb easiestb wayb tob distributeb itb wouldb beb theb bestb wayb tob go.b Ifb yourb locationb
wouldb beb byb theb mountainsb thanb byb airb orb landb wouldb beb theb bestb wayb tob distributeb theb
merachndise.b Sob yourb geographicalb locationb reallyb doesb matterb whereb yourb lacationb is.b Alsob
oneb hasb tob checkb whereb thereb wouldb beb moreb traffic.b Youb wouldb wantb tob beb locatedb whereb
peopleb willb knowb whereb youb placeb isb andb thatb couldb beb ab partb ofb marketing.b Yourb
geographicalb locationb canb affectb yourb selectionb ofb distributionb channelsb inb ab multitudeb ofb
ways.b Oneb goodb exampleb ofb thisb isb ab companyb thatb specializesb inb bringingb productb viab
containerb fromb overseas.b Ifb theirb businessb isb heavilyb reliantb onb import;b beingb closerb tob ab portb
orb majorb railb hubb shouldb beb highlyb desirable.b Theb longerb itb takesb tob getb fromb theb port,b tob theb
rail,b andb thenb halfwayb acrossb theb countryb isb justb addedb timeb andb expenseb onb theb finalb
transportationb cost.b Thisb alsob canb resultb inb moreb delaysb whenb theb supplyb chainb isb extremelyb
busyb withb largeb numbersb ofb productb beingb importedb asb wellb asb potentialb railb strikesb affectingb
theb supplyb chain.b
Logisticsb isb ab vitalb butb oftenb overlookedb partb ofb operations.b Inb theb manufacturingb industryb
theb productb tob makeb theb endb productb mustb beb broughtb inb andb thenb theb finalb productb mustb beb
shippedb outb whenb completed.b Ab strongb logisticsb departmentb canb makeb ab companyb thatb muchb
betterb whileb ab weakb unsuccessfulb oneb canb drasticallyb effectb theb bottomb lineb ofb theb company.b
Ifb ab companyb doesn'tb meetb customerb deadlinesb itb couldb eventuallyb leadb tob theb lossb ofb thatb
customer/revenue!.b Geographicalb locationb ofb ab businessb canb affectb howb variousb distributionb
channelsb areb selected.b Whenb ab businessb isb locatedb farb awayb fromb theb market,b theb choiceb ofb
distributionb channelb shouldb beb oneb thatb ensuresb thatb theb productsb orb servicesb reachb theb
marketb withinb theb stipulatedb timeb frame.b whenb theb businessb orb productionb takeb placeb nearb
theb market,b thereb isb nob needb forb ab distributionb channelb sinceb theb companyb mayb sellb theb
productsb andb servicesb directlyb tob theb customers.
Geographicalb locationb canb alsob affectb theb selectionb ofb distributionb channelb sinceb itb
determinesb theb timeb takeb forb theb productsb andb servicesb tob reachb theb marketb forb instanceb
manufacturerb needb tob transferb productb andb servicesb tob ab marketb forb sellb butb itb mayb beb tob farb
thisb mayb costb theb manufacturerb andb theb marketb tob transferb goodb andb receiveb butb notb asb
difficultb forb ab companyb thatb isb inb theb sameb locationb asb theb manufacturers.
Theseb areb examplesb ofb distributionb channelsb .b Directb andb indirectb channels.
Thereb areb numerousb factorsb thatb affectb theb selectionb ofb ab distributionb system.b Manyb
companiesb decideb channelb splitb byb lookingb atb theb customerb demographics,b particularlyb age.b
Context:b inb anb emergencyb whereb web needb ab fastb answer,b theb companyb wouldb answerb theb
phone,b 'irrespectiveb ofb ourb demographicb group,b personalityb andb theb typeb ofb businessb areb allb
factors.b Theb unitb valueb ofb theb product,b perishability,b technicalb nature,b standardizedb orb
customizedb product,b numberb ofb buyers,b typesb ofb buyers,b buyingb habits,b andb alsob theb buyingb
quantity.b Allb ofb theseb canb affectb theb choiceb ofb channelsb ofb distributionb byb theb manufacturer.b
Ib liveb inb Arizona,b whichb rarelyb hasb anyb weatherb thatb causesb distributionb issues.b However,b Ib
haveb learnedb thatb whenb orderingb thingsb fromb otherb statesb Ib needb tob keepb inb mindb theirb
geographicalb locationb andb theb season.b Ib haveb ab daughterb whob isb onb medicationb thatb onlyb
comesb fromb certainb specialtyb pharmaciesb andb needsb tob beb shippedb inb monthly.b Inb theb winterb
months,b Ib needb tob beb onb topb ofb itb andb orderb herb medicationsb takingb intob accountb theb possibleb
weather.b Oneb yearb web endedb upb havingb tob useb theb hospital'sb supplyb bcb thereb wasb ab massiveb
snowstormb inb theb midwestb andb herb medicationsb gotb stuckb onb theb truckb forb days.b
Thereb aren'tb anyb middlemenb inb thisb scenario,b theyb getb packedb atb theb pharmacyb andb shippedb
directlyb tob me.
Lastb Christmas,b Ib wasb workingb atb Walmartb asb partb ofb theb stockingb teamb whichb web calledb
Capb 2.b Itb snowedb reallyb badb theb nightb beforeb andb Ib wouldb alwaysb helpb unloadb theb truckb
everyb timeb Ib wouldb getb thereb (unlessb theyb didn’tb needb myb help).b Ib getb tob workb andb myb bossb
tellsb meb thatb thereb isb nob truckb thatb dayb becauseb theb roadsb wereb sob badb theb nightb beforeb thatb
itb wasb toob dangerousb forb theb truckb tob getb thereb tob deliverb ourb stuff.b Thisb isb oneb ofb theb waysb
geographicalb locationb canb haveb anb effectb theb distributionb channelb withb theb roadsb notb beingb
safeb tob drive.b Onb theb otherb hand,b ifb itb wereb summerb timeb theb weatherb alsob tendsb tob beb
unpredictable.b Ifb web wereb tob getb enoughb rainb tob theb pointb whereb theb roadsb wereb toob floodedb
thatb wouldb alsob beb ab hugeb impactb onb theb geographicalb location.b Thankfullyb Ib don’tb workb atb
Walmartb anymoreb sob Ib don’tb haveb tob dealb withb stuffb likeb that.
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