An analysis of distribution channels used for export by Illinois manufacturers of food processing machinery
Anderson, Alvin Thor
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The Problem: The purpose of this investigation is to examine the various distribution channels used by the exporting manufacturers of Food Processing Machinery within the State of Illinois. A delimitation of six sub-problems are within the scope of the major problem. (1) What is the current volume of business now being done in foreign markets by a select number of manufacturers? (2) What means of transportation is generally preferred by the manufacturers to ship the goods from the Illinois production facility to the six major geographical areas of the world? (3) What type of sales channel is preferred by the manufacturers to facilitate exporting to the six geographical areas of the world? (5) What'is the geographical distribution of foreign business affiliations of the manufacturers In the six major geographical areas of the world? (5) What terms of sale are generally preferred by the exporting manufacturers when selling throughout the world? (6) What is the record of payment from those geographical areas where credit is extended by the exporting manufacturers? Procedure: A questionnaire was developed after the analysis of previous export distribution channel studies and background material on the various channels available to the industry. It was the purpose of the questionnaire to provide for statistical tabulation of a relatively in-depth view of the channels of distribution and one facilitating factors used for export by the polled universe. The universe included all those firms listed in the Illinois Manufacturers Directory, 1965 under the classification, manufacturers of Food Processing Machinery. Conclusion: Exporting has come to affect the sales volume of almost every manufacturer in the Food Processing Machinery Industry. The effect on total sales volume is generally minor when compared to domestic sales; yet international selling is most often said to be expanding at a rapid pace. Canada and Mexico, the North American market, is still the main export target for most of the manufacturers polled. The Near East, Par East, and Africa may be considered the least penetrated markets. The manufacturers generally prefer direct selling when doing business on the international level. Licensing agreements seem to hold the most importance as a foreign corporate connection for the industry. Limited amounts of credit are offered by the firms. When credit is extended, the record of payment is generally prompt.