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Physical Distribution of Products in The Philippines

The document discusses issues with physical distribution in the Philippines. The COVID-19 pandemic and resulting lockdowns slowed supply chains and increased costs. Additionally, the war in Ukraine drove up fuel prices, impacting transportation costs. Wholesalers sell products in bulk to retailers, while retailers sell smaller quantities directly to consumers. Companies cannot survive without intermediaries to link their products to end users and handle distribution, promotion, and supply chain management.

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Reynald Cabias
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158 views1 page

Physical Distribution of Products in The Philippines

The document discusses issues with physical distribution in the Philippines. The COVID-19 pandemic and resulting lockdowns slowed supply chains and increased costs. Additionally, the war in Ukraine drove up fuel prices, impacting transportation costs. Wholesalers sell products in bulk to retailers, while retailers sell smaller quantities directly to consumers. Companies cannot survive without intermediaries to link their products to end users and handle distribution, promotion, and supply chain management.

Uploaded by

Reynald Cabias
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Briefly answer the following questions:

1. Discuss the current issues associated with physical distribution of products in the
Philippines.
Ans. One of the current issues associated with physical distribution of products in the
Philippines is the spread of a virus known as the COVID 19. This pandemic brought a
downsides in most of the business industries. To minimize the spread of this kind of
virus, government strictly mandate new normal rules. This kind of rules slowdown the
process of distribution specially the cycle of supply chain because there are a lot of
procedure and cost to be able to pass the boarders that is under lockdown. With this,
the physical distribution might not be faster than before.
The war between Russia and Ukraine can be also associated to the physical
distribution which create the insanely hikes of price in fuels. This kind of issue has a
great impact to the business with it comes to the distribution of goods and services
because we know the when we are talking about distribution and its channel, we also
refer to the transportation used in order to link from manufacturer to the customer and
the transportation is involve fuels will be needed in order to create an operation.

2. Compare and contrast wholesaling and retailing.


Ans. In Wholesaling the product was sold for a resale, which means that they sold a
product in bulk from the manufacturer to the retailer. On the other hand, retailer also
tend to buy a smaller amount from bulks goods or product from the wholesaler and
they will sell it to the end user such as customers.They both purchase and sell product
but what differ from the two is the capacity of their operation wherein the wholesaling
purchase a product to sell it further from any intermediaries that are lower from them
in terms of distribution while retailing is a merchant selling that target the final users.

3. Can a company survive without intermediaries? Justify your answer.


Ans. No. We may be able to realize that we can build a company even without an
intermediaries but that will be for the mean time. Intermediaries are the one that will
link the companies product to another intermediaries up until the end users. This will
help to keep up with the demands and to be able to promote into a wider fields. It will
help the buyers or consumer to easily find their needs and to easily disseminate the
supplies from a certain channels until it reaches the final aims. Although having many
channels or intermediaries is a bit financially draining but with this kind of connection,
the company would find it hard to distribute their products and it would even bring the
company into crisis because of slow distribution, lack of promotional marketing and
poor supply chain strategy. In simple word, this intermediaries will sent the product
from producer to the retailers ans these retailers will give the service and goods to the
end users and company itself cannot reach that ends with the bridge of business.

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