Advantages of Using Distributors

Many manufacturers want to get their products faster and at market-friendly prices into the market. As much as this is good, it has its limitations. The job of the manufacturer is to get the best product possible ready for the market; the thought of getting this product to the consumers should be left to other player in the supply chain. A distributor is a player in the supply chain who knows the market thoroughly and can distribute to several retail outlets. Some distribution companies have the reach and the facilities needed to reach more than 70,000 stores in and out of the United States.

Some of the benefits of using a distributor will be discussed below.

The ultimate benefit of using a distributor is that they can sell the products quickly and generate significant income as soon as possible. The aim of the manufacturer is to make profit as this will encourage subsequent production. The distributor has the network needed to get the product into retail stores.

All established distributors have good relations with existing customer base of retailers and this is the tool needed for their job. Established distributors are known by many retailers and they can successfully distribute new and established products. If a manufacturer is starting out with a new product, established distributors can help get into many markets.

With years of experience in the market, they know how best to sell to their customers. They are skilled in marketing and experienced at sales. Distributors have had to deal with many retailers and they know the issues facing the business. Thus, they can tailor their presentation to allow for a profitable business for both the manufacturer and the retailer.

Distribution companies have large storage spaces. They receive products from several manufacturers and they deliver to a lot of retailers. This you can benefit from as a manufacturer as you can always get the distributors to take shipment of products as soon as they are fully produced. The manufacturer does not have to get more space to store product; the distributor is adequately equipped to do that.

Many American and Chinese manufacturers benefit from the work of distributors in getting their products to places they cannot be themselves. You get to see products travelling to several continents as distributors are looking for new markets to get to. Even within America, products produced by American manufacturers are distributed to Canada, Mexico, and some other neighboring countries. The work of distributors is fueled by the need to distribute all the products they have at hand and get new products distributed.

Distributors also have the speed needed to get the products to markets. Due to the fact that distributors don’t want the products to congest their warehouse and thus, they are seeking markets fast. This can benefit the manufacturer as he is assured of the products quickly entering the markets. Distributors have the transportation needed to make supplies and their logistics arrangements are well suited for distribution to several markets.