Distribution System

Distribution system intended to make things up to the consumer products smoothly, but the producers should pay attention conditions and facilities available in the community, where a good distribution system will greatly support the activities of production and consumption.
In the distribution of products from producers to consumers, manufacturers can use several types of distribution systems can be grouped:
   1. Direct distribution, where manufacturers distribute their products directly to consumers.

    For example:

        * Sellers itinerant fried rice
        * Fishermen sell their catch directly to consumers
        * Farmers selling eggs and meat cattle directly to consumers


Semi-direct distribution, where the distribution of manufactured goods from producers to consumers through an intermediary body (shop) owned by the producers themselves

    For example, the production of shoes sold to consumers through stores owned shoe factory itself.

   3. Indirect distribution. In this system a manufacturer does not directly sell their products, either an object or service to the user but rather through an intermediary.

    For example, farmers sell their farm to the Village Unit Cooperatives (KUD) who bought it with a base price according to market prices that farmers are protected from the practice of middlemen.


Distribution Function
Distribution function is performed by a legal entity or individual from the collection of goods by way of purchase from the manufacturer for distribution to consumers, based on these two distribution functions are divided into:

   1. Exchange function, where marketing activities or the sale and purchase of goods or services which includes buying, selling, and risk-taking (to address the risk can be done to create conditions that warehousing well, that will insure the merchandise and is being done).
   2. Provision of physical function, associated with providing the merchandise in the right amount covers the collection, storage, sorting, and transportation.

   3. Supporting function, this is a function relating to the effort to provide facilities to other functions so that the distribution of activities run smoothly, this function includes services, procurement, information dissemination, and coordination.