ABSTRACT
This chapter explains the function of distribution in a general sense and examines its component parts showing how they interact one with the other. It discusses the overall tendency for producers to exercise greater control over the whole distributive process. The concept of Total Distribution Costing has gained currency. The extension of total distribution costing and more scientific management in the field implies an increasing control, direct or indirect, of distribution by the producer. A firm's interest in distributive costs is a function of their importance relative to other costs. Many of the innovators in distribution have been food and drink manufacturers, whose distribution costs can amount to as much as one-third of sales revenue. Although containerisation has largely developed from the initiative of transport operators, the achievement of its full potential is largely dependent upon firms so organising themselves as to be able to carry out a total distribution cost analysis.
