Contents

• Introduction 3
• Role of Distribution Channels in Supply Chain Management 3
• Operational Challenges faced by Distribution Channels Operating in Australia 5
• High cost of doing Business 5
• Online Retailing 6
• Conclusion 7
• References 9

Description

Distribution is one of the most important elements of marketing a product in the market. Distribution channels enable the manufacturers to simplify the process of supplying the finished products to the consumers. Most of the businesses use intermediaries to bring their products to market one of them being the retailers, which provide the consumers with convenience in buying the products easily. Australian retail industry is rapidly growing but is facing several challenges due to globalization. The regulations formed by the government have increased the cost of business for the retailer, which restricts them from providing the products at a competitive price as expected by the consumer. Also, the increase in online retailing has enabled the consumers to buy same products at a much lesser price from international retailers. These challenges are putting much pressure on the local retailers, which can be overcome only through ease on regulations and development of online retailing by the local retailers in association with local manufacturers and distributors.