Scope of application, advantages and disadvantages of integrated distribution mode of commercial logistics

The distribution business model of commercial logistics integration is the internal sales distribution model or self-operated distribution model of enterprises (groups).

Scope of application: As the main body of distribution, sales enterprises or production enterprises integrate distribution and business flow into a means of promotion around the fundamental purpose of product sales and increasing market share.

The most typical forms are the distribution activities mainly carried out by wholesale stores and the internal distribution activities carried out by chain enterprises.

Advantages: circulation enterprises can directly organize the supply of goods, have the ownership and control of products, and obtain certain resource advantages.

Disadvantages: it is not conducive to the large-scale operation of logistics and distribution activities; It will inevitably be restricted by sales volume. At the same time, it is often difficult for production enterprises to obtain the advantages of logistics by directly distributing their products by sales and distribution mode, so this is not the best choice for their distribution mode.