Distribution Channel

Ever look at that last crumb on your plate—that last grain of rice, or crumb of bread—and wonder how exactly it came allll the wayyyy from some farm to your plate (and now, to the trash, *sniffles*)?

The answer: Distribution channels.

A distribution channel is the chain of hand-offs of a good or service until it reaches consumers, going through multiple businesses. Like a relay race, but for the economy.

For instance, a grain of rice might have been grown in a field in China, then gone to a rice mill, then to a food supplier, then to your grocery store, then to you...and then to the garbage. It ain’t over for that grain.

This is an example of an indirect distribution channel, where there are intermediaries. A direct distribution channel cuts out the middle men, where consumers can buy from the manufacturers. Might work for some clothing and mattresses, but good luck buying rice directly from a Chinese farmer on the reg.