In a supply chain, a distribution network is an interconnected group of storage facilities and transportation systems that receive inventories of goods and then deliver them to customers. It is an intermediate point to get products from the manufacturer to the end customer, either directly or through a retail network.

a) A specialty chemical company is considering expanding its operations into Brazil, where five companies dominate the consumption of specialty chemicals. Explain what sort of distribution network should this company use.

b) A distributor has heard that one of the major manufacturers from which it buys is considering going direct to the consumer. Explain what can the distributor do about this and what advantages can it offer the manufacturer that the manufacturer is unlikely to be able to reproduce.

c) Explain with example why has the online channel been more successful in the computer hardware industry compared with the grocery industry