What are Manufacturers NOT Telling You About Distributors? 12 Key Reasons Why Distributors Exist

The article highlights the often misunderstood and underappreciated role of distributors in the global supply chain. It provides 12 key reasons why distributors are essential and why they continue to play a crucial role in various industries. These reasons include:

  1. One Stop Shop: Distributors offer a wide range of brands and products under a single roof, saving time and costs for customers.

  2. Localization: Local distributors understand the culture, language, and values of their region, providing a more tailored customer experience.

  3. Distributors Sell “Solutions”: Unlike manufacturers who sell products, distributors offer solutions by understanding customer needs.

  4. In-Stock Products: Distributors keep products in stock, reducing wait times and providing immediate access.

  5. Inventory Management: Distributors offer inventory management programs and scheduled deliveries, reducing customers’ inventory costs.

  6. Small-Volume Purchases: Customers can purchase smaller volumes from distributors, avoiding minimum order quantity (MOQ) constraints imposed by manufacturers.

  7. Direct-to-Door Deliveries: Distributors handle complex customs procedures and deliver products directly to customers’ doorsteps.

  8. Cost-Effective: Contrary to popular belief, distributors can offer competitive prices as they buy in large volumes and pass on the discounts to customers.

  9. Flexible Payment Terms: Distributors often offer credit terms, allowing customers to receive goods before making payments.

  10. Brand Awareness & Promotions: Distributors actively market products, create promotions, loyalty programs, and offer rewards to keep customers informed and engaged.

  11. Extended Warranties: Distributors may provide extended warranties beyond the manufacturer’s standard warranty to enhance customer satisfaction.

  12. Efficient Returns Policies: Distributors often replace defective products promptly, eliminating the waiting time associated with manufacturer returns.

The article emphasizes the value of distributorship, particularly in the context of disrupted global supply chains, where distributors play a vital role in ensuring the availability of products and providing excellent customer service.

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