Logistics and Supply Chain Management, 6th Edition

Innovation in the distribution channel

Until recently, channels of distribution changed very little. The same institutions and structures that had existed for centuries were still in place. The role of the wholesaler, distributor, stockist or retailer remained more or less the same. However, a combination of competitive pressure and technology development has, in the last few decades, brought about dramatic changes in those distribution channels. One of the biggest drivers of these changes has been the rapid rise in the use of the Internet both for online shopping and for business-to-business transactions. The Internet has enabled a greater connectivity between sellers and buyers and in the process has disrupted existing channels – particularly ...