When producers manage all marketing functions at the retail level they are employing an administered distribution system.
What is distribution system?
This refers to how goods produced by manufacturers are moved or transported from production place to final consumers.
Distribution system refers to the transmission of the goods and services and equipment to the end users from the manufacturer. It involves all the methods, logistics and the procedures which is required for the flow of the goods and services to the users.
Advantages of distribution systems are:
1. Distributed systems consists of high implementation costs, but are cost effective in the long run.
2. Distributed systems are made to be efficient in every aspect since they posses multiple computers.
3.The distributed systems are far more reliable than single systems in terms of failures.
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