Distribution Decisions by Lada, Inc. Lada, Inc. produces office supplies and use
ID: 1200892 • Letter: D
Question
Distribution Decisions by Lada, Inc. Lada, Inc. produces office supplies and used to sell them to wholesalers. The wholesalers would then sell the supplies to retailers at a price of about 40 percent more than what they paid Lada for the supplies. This year. Lada created a website so that it could receive orders directly from the retail stores that sell office supplies. It now ships the office supplies directly to the retail stores. It is able to offer the stores a lower price for its supplies than what these stores were laying when a wholesaler was involved. Consequently, the demand for its supplies has increased substantially. By eliminating the intermediary. Lada lias been able to generate more sales and improve its performance. Disadvantage of Eliminating Wholesalers. What is the disadvantage to Lada. Inc. of dealing directly with retailers? Advantage of Eliminating Wholesalers. What is the advantage to Lada of dealing directly with retailers? Market Coverage. Why might Lada be able to reach more retail stores across the United States with its new distribution system?Explanation / Answer
Disadvantage are that the proper flow of goods are hampered. Wholesale gives valuable information about the customer tastes and fashion. The operation makes it convinient. They also help in generation the demand more.
Advantage are that the removal of middle man will decrease the cost which is to be taken from the customer. They are an hinderance between producer and consumer and Large and established retailers can afford to buy their suppliers in bulk.
Market coverage:- By making a proper strategy between the retailer and the whole saler. The whole saler should be their to make maximum area coverage. and the retailer should be given the charge to reach their for maximum profits.