The impact of

distribution channel
on Awal Dairy
Company W.L.L.

Farah Al Qadah, Alzain Nabeel

12B
Table of contents

What Is a Distribution Channel?

Types of Distribution Channels

Awal Dairy company’s Distribution Channel

Awal Dairy Company W.L.L. profit increase

Graphs

Summary
What Is a Distribution Channel?

The term “distribution channel” refers to the methods used by a company to deliver its
products or services to the end consumer. It often involves a network of intermediary
businesses such as manufacturers, wholesalers, and retailers. Selecting and monitoring
distribution channels is a key component of managing supply chains.
What Is the Difference Between Direct
and Indirect Distribution Channels?

Direct distribution channels are those that allow the manufacturer or service provider to
deal directly with its end customer. For example, a company that manufactures clothes
and sells them directly to its customers using an e-commerce platform would be utilizing
a direct distribution channel. By contrast, if that same company were to rely on a
network of wholesalers and retailers to sell its products, then it would be using an
indirect distribution channel. Awal Dairy Company W.L.L. is an indirect distribution
channel.
Awal Dairy company’s Distribution
Channel

Awal Dairy exports its products to Kuwait, Saudi Arabia, UAE, Jordan, Iraq, Yemen,
North & West Africa and Latin America. Recently Awal Dairy expanded its operations in
Kingdom of Saudi Arabia with a new branch.
Awal Dairy Company W.L.L. profit
increase

The Group’s subsidiary Awal Dairy Company’s total sales amounted to BD 14.7 million
for the current fiscal year, while net profit for the year increased from BD 1.42 million to
BD 1.56 million due to improved performance of its subsidiary in Kuwait, increased
export sales and reduced cost of raw materials and packaging materials and the co-
packaging of some of its products under the brands of several Gulf and international
companies for distribution in the GCC, Middle East and North Africa.
 Graphs

Increase from BD 1.4 to 1.56 in a year due to

Distribution channels.

Source of information:
https://www.trafco.com/2018/FINAL-Trafco-AR-Eng
-2018.pdf
Summary

A distribution channel is the network of businesses or intermediaries through which a

good or service passes until it reaches the end consumer. Distribution channels can
contain many levels or intermediaries, such as wholesalers or retailers, as products
move from manufacturer to consumer. The improved performance of its subsidiary in
Kuwait, increased export sales and reduced cost of raw materials and packaging
materials led to an increased profit in Awal Dairy Company W.L.L.
References

https://www.trafco.com/2018/FINAL-Trafco-AR-Eng-2018.pdf

https://trafcologistic.com/dt_testimonials/awal-dairy-company/