Assignment 1 2) Traditional distribution channels rely on many separate firms that often did not share the same goals. Traditional distribution channels were very slow because of the lack of technology such as the internet and advanced information systems that allow for the quick and efficient sharing of information. They relied on telephone, fax, and mail. Everything from order creation to shipment to the customer was done manually. This all came together in an inefficient, slow, and mistake prone distribution channel. This caused firms to carry large inventories which cost them a lot of money. A modern supply chain is a smooth running, well-oiled machine. This is made possible through the use of the internet and complex information systems. A modern supply chain and more traditional distribution channels are essentially the same. However, in a modern supply chain, almost everything is done automatically and all of the firms work together and share information to be as efficient as possible. 8)
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