Alternative Distribution Channel
This is the distribution from the manufacturer straight to the consumer. This is the distribution line that requires that the manufacturer get retail units or direct orders are made by consumers to the manufacturers. Products with special requirements like customization and manufacturer installation require direct distribution.
This is distribution through the use of middlemen. The players in the supply chain feature in this channel as the product is passed from the manufacturer to the distributor, to the retailer, before it finally gets to the consumer.
This is a big player in the supply chain. The distributor gets the products from the manufacturer and uses its own logistics arrangement to get the products to retailers in the line. The distributor is an independent player and has connection with several manufacturers and retailers.
This is what many manufacturers opt for. This is selling to consumers directly via the internet. Manufacturers advertise via the website, take orders, and ship to customers directly. This is used by fashion brands, health supplement manufacturers, and others. Consumers can even customize their products via this platform.
This is selling to customer via the catalog. The catalog can be an illustrated book, CD, or video where products are advertised and customers can place orders on them. This is offline and the internet is not needed except if orders can be placed via email address.
This is selling directly to consumers via a sales team. This is probably the most used direct distribution method as salespersons are employed and trained to sell to consumers. These persons go to offices, door to door, and other places to make sales to consumers. These sellers work for a company.
This is a seller that adds value to a third-party product. It can be that the value-added reseller is adding new packaging, or adding a new fixture to the product. This reseller gets the product modified and sells to the final consumers.
This is an expert who provides professional advice or services to people in business. They go over data and analyze it to give their clients advice. There are sales consultants who help assess the sales team and optimize it to be better and more productive.
This is a middleman who deals in goods. The dealer can get the product from a wholesaler or directly from the manufacturer. Automobile dealers are the most common in this group. They sell to retailers directly and they can be engaged to source for products.
This is the direct sale to customers. Retail can be via several stores which can range from the basic convenience stores, to the supermarkets, to food and drug stores, to shopping malls, and several other retail outlets. These get products from distributors or from manufacturers.
Sales Agent/ Manufacturers’ agent
This is a seller that works directly for a manufacturer. This agent represents the manufacturer in pitching to distributors, retail outlets, and other places where delivery can be taken of the manufacturer’s product.