Fulfillment distribution is exemplified by Amazon fulfillment centers which receive large customer order volumes and are responsible for order processing including collecting products from sellers, transporting to centers, packaging, labeling, and delivering products to customers. Broad-line distributors like Costco and Home Depot have medium volumes and margins. Value-added distribution is illustrated by Apple's iPhone business which has low volumes but high margins.
Fulfillment distribution is exemplified by Amazon fulfillment centers which receive large customer order volumes and are responsible for order processing including collecting products from sellers, transporting to centers, packaging, labeling, and delivering products to customers. Broad-line distributors like Costco and Home Depot have medium volumes and margins. Value-added distribution is illustrated by Apple's iPhone business which has low volumes but high margins.
Fulfillment distribution is exemplified by Amazon fulfillment centers which receive large customer order volumes and are responsible for order processing including collecting products from sellers, transporting to centers, packaging, labeling, and delivering products to customers. Broad-line distributors like Costco and Home Depot have medium volumes and margins. Value-added distribution is illustrated by Apple's iPhone business which has low volumes but high margins.
1. We discussed 3 main categories of Distributors: Fulfillment, Broad Line,
and Value-Added. Provide an example company for each and why. Answer: Fulfillment Distribution: Amazon fulfilment Center is a good example of fulfilment distribution. In amazon, they receive a large volume of customer orders through amazom.com. The main responsibility of the fulfilment center in the order processing cycle is to collect the customer-ordered products from the seller, transport that product to the fulfilment center, perform further processes such as packaging, labelling and then deliver the product(s) to the customer’s doorstep with the help of a delivery partner (when needed).
Broad Line distribution: Broad-line distribution has medium volume and
medium margin. Costco and Home Depot are examples of broad line distribution. Value-added Distribution: value-added distribution has low volume and a high margin. Apple (I-phone mobile) is an example of value-added distribution.