Distributors
Distributors are the intermediaries between the manufacturers and the retailers or end-users. They play a crucial role in the supply chain by purchasing products from manufacturers in bulk and selling them to retailers or end-users in smaller quantities.
Distributors help manufacturers in reaching a wider market by leveraging their existing network and contacts. They also undertake activities like warehousing, inventory management, transportation, and marketing to ensure the smooth flow of goods from manufacturers to end-users.
Some common types of distributors are:
1. Wholesalers: Wholesalers buy products in large quantities from manufacturers and sell them to retailers or other businesses. They often operate from warehouses and stock a wide range of products.
2. Retailers: Retailers purchase products from wholesalers or directly from manufacturers and sell them to end-users. They can be brick-and-mortar stores or online businesses.
3. Brokers: Brokers act as intermediaries between buyers and sellers. They do not take ownership of the products but facilitate the transactions by connecting buyers with suitable sellers.
4. Agents: Agents represent manufacturers in specific geographic areas or markets. They promote the manufacturer's products and negotiate deals with retailers or other buyers on behalf of the manufacturer.
5. Importers/Exporters: Importers bring products from foreign manufacturers into their own country for distribution, while exporters distribute products manufactured within their country to international markets.
Distributors play a significant role in ensuring that products are available to customers in a timely manner and at the right locations. They help manufacturers focus on production while taking care of the logistical aspects of distribution.