The difference between a supply chain and a channel of distribution is that ________.

Question

Quizplus · Accepted Answer

A supply chain includes all the activities involved in getting a product from the raw materials stage, through production, and finally to the end consumer. This includes companies that supply materials for production, as well as transport and logistics companies that help move the product through the supply chain. A channel of distribution, on the other hand, refers to the network of intermediaries through which a product moves from the manufacturer to the end consumer. While some members of the channel of distribution may be part of the supply chain, not all of them necessarily are. Additionally, members of a channel of distribution may sell different products, use different pricing methods, and employ different promotion methods, whereas supply chain members are all working toward the same goal of getting the product to the end consumer.

The Difference Between a Supply Chain and a Channel of Distribution