Discrepancies mean a difference between two things that are supposes to be the same.
When talking about discrepancies in distribution, the difference usually applies to what is being produced and what is being sold. The process of choosing a channel of distribution plays a partial role in the existence or the lack of thereof.
Typical discrepancies in distribution
Business managers usually consider Discrepancy of Assortment and Discrepancy of Quantity.
Discrepancy of Assortment. It is the difference between all the product lines a manufacture makes and what the wholesaler wants to sell, and what the consumer will buy. The middlemen break this amount down into different selections which the wholesalers want.
For example, Kraft Heinz makes many different types of salad dressing. But, a no-frills store just wants to sell seven types because its customers do not buy the fancy kinds.
Discrepancy of Quantity. It is the difference between the quantity of products it is economical for an individual producer to make and the quantity normally wanted by individual consumers or users. It happens when the manufactures makes much more than individual consumers want to buy each time. The middlemen – wholesalers and retailers – break this amount down into smaller amounts for individual consumers to buy.
For example, The Coca-Cola Company producers many different types of soft drinks. But, a typical customer of a convenience store when the Coke is sold only wants to buy the Classic Coke.
The intermediaries in the distribution channel often use the process of accumulation. It means combining products from several different producers to make it more convenient for companies to buy and handle. Just think about when farmers collect food, and sell them to buyers who gather large amounts for shipping to processors.
The accumulation process makes distribution more convenient for everybody in the distribution channel and helps to eliminate discrepancies in distribution systems.
