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Place refers to the distribution channels used to get the product from manufacturer to customer. Most of the common knowledge students have is the final stage, retailer to consumer, which may include supermarket, vending machine, restaurant, retail outlet, online, telephone etc. Before this, the product may go through many hands. It does not solely mean the transport, but rather the 'middlemen' the product passes through before it reaches the end consumer. The more middlemen, such as wholesalers, distributors and retailers, between the manufacturer and the customer, the more costs and potential delays that may be passed on. The Internet has led to major changes in distribution channels.
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Supply chain management is the concept of managing the movement of a product from its manufacture until it is sold to the customer. As businesses continue to vertically integrate, the movement of product through the supply chain is often maintained within one organization, allowing for increased efficiency and greater economies of scale. For example, the farmer who grows the coffee works for Starbucks, the coffee is then sent to packaging, then to the wharehousing/distribution centre and finally to the store. All of this process is owned and operated by Starbucks.