Distribution and Retailing Essay Example | Topics and Well Written Essays - 2750 words

Distribution and Retailing - Essay Example Brief Overview of the Scenario The paper describes about the managerial issues faced by Katie Collins, the managing director of Fashion Wholesalers in relation to its distribution and retailing functions. Fashion Wholesalers is a clothing manufacturing company which principally targets women operating as the agents of UK with the networking comprising around 30 manufacturing Scandinavian and German clothing producers. It also supplies for approximately 120 small sized retailers. The products that are distributed through Fashion Wholesalers target primarily the housewives within the UK. The distribution activity of the company, i.e. Fashion Wholesalers, can be described on the following grounds. It has been observed that the buyers of Fashion Wholesalers, belonging to the age group of 30 to 60 years usually perform 4 trips for collecting the produced materials from the suppliers in the market. The process of ordering for the company is carried out in every season based on the scheduli ng of delivery of products by the buyers on a monthly basis. The produced products are then distributed to the warehouse located at Peterborough. The process of delivery in Fashion Wholesalers includes showrooms from where the buyers can directly make their purchases in person. Notably, the clothing products are manufactured all-round the year and the samples are distributed in all the seasons, along with the continuation of warehousing and dispatching activities. Contextually, it can be observed that the demands for the products are quite high attracting most of the targeted customers in the niche markets of retailing. It is worth mentioning in this context that most of the targeted customers depend on Fashion Wholesalers for supplying quality products at cheaper rates which has further accelerated the growth rate in the organisation. 1.2. Rise of Conflict in Fashion Wholesalers Channel conflict usually occurs if there are clashes of methods and goals between the members belonging to a channel of distribution. Notably, because the distribution channel of Fashion Wholesale is performed on the basis of multiple dimensions involving multiple layers such as the suppliers, the producers and the end users, which further continues throughout the year, there are high chances for Fashion Wholesalers to witness similar disruptions in their distribution process. Theoretically, distribution channel conflicts can be categorized into horizontal and vertical categories. Where horizontal channel conflicts signify gaps and limited cooperation among members belonging to similar level, the vertical channel conflict indicates dismissal among members belonging to different levels in the channel distribution (Jicheng, n.d). In the currently practiced distribution channel of Fashion Wholesalers, probability of both these conflicts to arise can be observed apparently. Additionally, resource scarcity can be determined as another significant aspect to cause conflicts in the channel of distribution. In the context of Fashion Wholesalers, it can be stated that owing to the complexity of the distribution channel framework, conflicts might occur among the members due to insufficiency of resources for manufacturing clothing products and/or due to their inefficiency to allocate the available resources efficiently so as to serve the retailers all around its target market in a time-efficient and cost-effective way. Moreover, if Fashion Wholesalers attempt to sell a proportion of the produced products by themselves directly