Definition of Distribution, Purpose and Functions Along with Examples

The word distribution may already be heard in everyday life. Even so, not many know the meaning of the word distribution itself. However, do you know the explanation about the distribution along with the important things in it?

Definition of distribution has the meaning as an activity whose function is useful for economic development. Or more simply distribution is the activity of distributing products in the form of goods or services from producers to consumers.

Some experts also try to give some of their opinions, such as distribution is an activity of channeling goods and services made by producers to be given to consumers to be widely spread.

The existence of this distribution activity is expected to bring producers closer to consumers, so that goods and goods from all regions of Indonesia and outside Indonesia can be fulfilled properly. Meanwhile, those who carry out distribution activities are called distributors.

However, in reality in the field, goods that have been produced by producers are not always required to reach consumers through distributors. Even so, in a modern economic movement like today, distribution activities have an important role.

Moreover, with the increasingly advanced development of transportation technology that makes the relationship between nations closer. For this reason, the role of distribution can be said to be very important so that goods can not only be consumed domestically but also abroad.

Distribution Purpose

Not only aimed at individuals, the purpose of this distribution also plays an important role for institutions which include:

  1. Continuity of Production Activities Can Be Guaranteed

Manufacturers and companies make goods for sale. From this sale, the producer will gain profit and be used again for the production process. The benefits can be obtained if there are already distributors.

  1. Goods or Services Production Useful For Consumers

Goods and services will be meaningless if they only remain on the producer's side. For this reason, goods or services can be said to be useful for consumers if there are already distribution activities.

  1. Consumers Obtain Goods and Services Easily

Please note that not all goods and services can be purchased directly by consumers through producers. Therefore, it is necessary to distribute or distribute from producers to consumers.

Distribution Types

Judging from the relationship between producers and consumers, the distribution system can be divided into:

  1. Direct Distribution

Is the sale or distribution of goods where this is done directly by producers to consumers without going through intermediaries.

  1. Indirect Distribution

Is the sale or distribution of goods from producers to consumers through intermediaries. These intermediaries involve traders, brokers, agents and commissioners.

Distribution Tasks

  1. Buying goods or services through a manufacturer in larger quantities.
  2. Introducing goods or services that have been traded to consumers such as advertisements or billboards
  3. Clarifying goods according to their shape, type, size and quality

Examples of Distribution Activities

  1. Mr. Anton owns a bakery company, and usually Mr. Anton leaves his bread at the shop to be sold to consumers.
  2. Dita is buying rice at the food stall
  3. Indah was selling various types of staple goods such as rice and vegetables
  4. Pertamina distributes gasoline and diesel fuel to gas stations.
  5. Kukuh is currently opening a repair shop and sales of spare parts
  6. Pandu has a rental car rental service that operates outside the city.

By knowing some important points regarding the meaning of distribution, purpose, types and examples above, it is hoped that those of you who read it can apply the distribution itself. Hope it is useful.