Distribution+Channel

Manufacturers work with distributors to manage sales of their products. Products are shipped from the manufacturer's dstribution center. Almost every product that reaches a consumer moves through several organizations. Each organization is responsible for a specific activity or set of activities that supports the exchange of products between the producer and the customer. Each activity must be provided at the appropriate time. The activity must be performed effectively in order for the entrie distribution channel to work properly.

Developing Supply Chains A company's distribution activities and distribution channel are seen as part of a longer channel known as a supply chain. A supply chain is the flow of products, resources, and information through all organizations involved in producing and marketing a company's products. A supply chain accumulates raw materials from suppliers for production as well as distributes manufactured products through channel members to the customer. A supply chain is responsible or
 * Products - raw materials from suppliers and finished goods sold to customers.
 * Resources - production and sitribution including money and people
 * Relationships - interactions among the participants involved in the channel, including the customers
 * Information - data needed by all channel members to complete their responsibilities

A supply chain is complex. It must work well in order to result in satisfying exchanges. Just as a business needs a chief executive, a supply chain needs one business to manage the channel. This manager is responsible for organizing the supply chain. The work begins with identifying the activities needed and possible channel members to participate in the supply chain.

Analyze the supply chain channels for music CDs"
 * **Supply Stage** (What are the raw materials needed to make the CD and who supplies these materials?) - Musicians create a recording. This includes a fair royalty or profit for the music artists or bands, personal managers, labels, marketing agents, engineers, producers, publisher (songwriter), etc. Copyrights are established - the owner has the sole right to duplicate or authorize the duplication of this work, and distribute it.
 * **Manufacturing Stage** (What does it take to make the CD?) - "Burning" and packaging the CD by recording industry - replication process to create millions of copies. CD manufacturing is done mainly in the countries where the music industry is strongest such as the U.S., Ireland, Japan, the United Kingdom, and other European countries.


 * Typical Process:**

1. A new digital master tape arrives at a CD pressing plant. 2. While the tape plays, a glass master disc is created. 3. From this glass master, a metal master, mother,  and a stamper is created. 4. The stamper is then used to reflect the beams  into and encode each new CD. 5. The CD is then assembled into its  plastic and outer packaging.

Copy protection mechanisms (e.g. licensed encryption keys, radio frequency identification tags, physical errors) are included to prevent users from copying. > retail websites for $15-20.
 * **Distribution Stage** (How does the final product get to retailers?) - CDs sent to wholesale distributor (i.e. music retailers and other independent music stores, dealers, broadcasters, record clubs, Internet). Companies (e.g. retailers) buy their CDs from a reputable distributor.
 * **Consumer Stage**(What does it take to get the final product to the end-users or ultimate target market?) - CDs sold at licensed stores or through licensed

A food supply chain works in a similar way to a product supply chain. A food supply chain refers to the processes that describe how food from a farm ends up on our tables. The processes include production, processing, distribution, consumption and disposal. The food we eat moves systematically in domino-like motion from producers to consumers while the money consumers pay for food goes to people who work at various stages along the food supply chain in the reverse direction. Because a food supply chain is domino-like, when one part of the food supply chain is affected, the whole food supply chain is affected, which is often manifested through changes in price.