Distribution

REPORT FOR JOHN MACHADO ADDRESSING THE OPTION HE IS CONSIDERING AFTER SELLING HIS CURRENT BUSSINESS John Machado has been involved in the fruit farming business, operating at channel level for which consisted of wholesalers, retailers and consumers. He was on top of the channel as the producer and still unhappy with the business. Since he is thinking of selling his current business and starting a new business down low the distribution channel of the fresh food industry, he has options he consider for instance the agents/brokers or even, wholesalers or even the retailer business. Agent/brokers are those people, who does a business of another person on their behalf and is normally paid on commission. A wholesaler is business that is primarily engaged in selling merchandise to retailers, commercial institutional or professional users or to other wholesalers. A retailer is a business that sells goods and services to the consuming public for their own use and benefit. Wholesalers buy merchandise on behalf of their customers. They add value to the distribution channel through storage and bulk breaking and providing product ranges and assortments to retailers. Retailers carry inventory, do further bulk breaking and merchandise the wide range of products supplied by manufacturers, suppliers and wholesalers to offer consumers a variety of products. But as for John Machado, he would engage in retailing in which he does the gap between producers and consumers. His business will be priced on one-level distribution channel of the traditional or consumer distribution channel. John Machado considers focusing on pre- prepared foods, which stores like Woolworths, Food Lovers market and Pick n Pay carry. He would in engage on this type of distribution channel that focuses on network of intermediaries involved in the processing of raw materials into eventual consumer goods. It includes producers (farmers), manufacturers (packaged food), processors (ingredients), wholesalers...