Distributors are the official representatives of the supplier company

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Currently, many of the largest corporations, for the convenience of organizing sales and optimizing the delivery of their own products to end consumers, organize distribution networks that include several additional links, in addition to the standard "seller-buyer". In particular, distributors are direct representatives of the company who ship directly from the supplier's warehouses.

If we consider the entire chain through which the movement of finished products produced by large holdings takes place, we can single out several of its main participants. These include, in addition to the enterprise that produces the goods, dealers and distributors. This provides a high degree of convenience for customers and allows you to maximize the geography of the company's customers. There are several key differences between the two representations here. The dealer, in particular, is engaged in direct sales of goods directly to its consumer. The products are supplied to him by the official distributor, who, in turn, purchases them directly from the manufacturing company. So the dealer hasthe ability to communicate directly with the end customer, carrying out both wholesale and retail trade. Its capabilities allow it to study the consumer market in detail, revealing both positive and negative opinions about the proposed product. Distributors, on the other hand, are wholesalers who only ship products to dealers. The task of a representative with this status is to globally expand the geography of sales of the manufacturing company, search for organizations to which wholesale shipments of finished products can be made.

In order to become a distributor, it will be necessary to conclude a contract directly with the manufacturer of the goods. Typically, this kind of agreement contains certain conditions, the fulfillment of which allows you to get the coveted status from the manufacturer. These typically include things such as the minimum quantity that a representative will need to ship each month, as well as payment options for the item received. Often the manufacturer provides a delay in payments, but it can be minimal and not exceed 3-5 days. In addition, a company that produces its own products officially gives its representative the right to use a registered product brand, ready-made advertising materials and any other privileges that ensure the distribution of goods in various regions.

Thus, distributors are the official representatives of the supplier company, who have the ability to make shipments directly from the manufacturer andhaving certain privileges to use the company's goodwill in relation to the goods sold. Its main task is to expand the geography of the client base for products shipped under the distribution agreement, search for new dealers and sales outlets.