This continues the hitchnews post on publishing:
As in most industries, a product is made, taken through the chain of distribution, everyone takes their piece of the pie, the consumer buys the product and voila, that’s it (yes, some companies do follow up to reduce cognitive dissonance, but we’re not counting that here).
However, publishing is not the only industry that realizes a need for change to restore profit, and for some companies this means tightening up the chain of distribution and taking matters into your own hands. It’s a pretty simple concept: if you can cut out middlemen in certain transactions, then do so, and that’s more money in your pocket. Some companies are already taking charge and changing the face of distribution. Case in point: Anheuser Beer Company.
In a recent Wall Street Journal article we read that Anheuser is looking for ways to cut costs – and squeezing the most out of their distribution is a high priority on their agenda. The possibility of eliminating distribution services from product sales, and directly delivering the beer to the stores would put a lot more money back into the company. The plan is for about 50% of Anheuser’s sales to come from direct to retailer. This seems like a logical idea, considering the potential savings once the ‘middle man’ is gone. This idea accepts that middle men are necessary for certain transactions, and they do have benefits, but are not always needed.
Causes Bob Mustin Supports
Native American culture. Education. Creative writing.