In supply chain management, what is meant by place utility?

Place utility in supply chain management refers to the value added to a product by ensuring that it is made available at the right location where consumers can access it. This concept is crucial because it enhances customer satisfaction and meets demand effectively. When products are delivered to convenient locations for consumers, it increases the likelihood of sales and improves the overall efficiency of the supply chain.

For example, if a product is distributed to various retail locations that are easily accessible to the target market, customers are more likely to purchase that product as it requires less effort on their part to obtain it. This aspect of place utility highlights the importance of logistics and distribution strategies in supply chains, emphasizing that simply producing a product is not enough—making it available in the right place at the right time is essential for maximizing its potential value to customers.