What is a “Distributor”? 

Distributor is a common term in supply chains, as a party who plays significant roles in a distribution process.

Based on The Great Indonesian Dictionary, distribution is a series of delivery activities to several people or several places. A person in charge of that activity is called a distributor. 

Distributors are parties who act as intermediaries for product manufacturers and other entities in the distribution channel or supply chain. The distribution channels can include retailers, resellers, or wholesalers. Distributors sign agreements with manufacturers, which may restrict them from selling competitors’ products.

Read More: Why Paperless is the Future of Your Distribution Operations

Distributor’s Roles

In addition to being an intermediary between consumers and producers, distributors are needed by both parties, from the consumers’ and manufacturers’ perspective

• For manufacturers

Ensuring products reach consumers’ hands. The existing distribution process allows products to reach consumers, so that the results of production activities can continue to be absorbed by the market.

• For consumers

Besides being important for manufacturers, the distribution process is also fundamental for the consumers so they can buy their desired product easily. 

Distributors’ Must Have Skills 

Logistics Management 

Ability to manage the logistics process is needed to maintain good relations with all parties, both clients and retailers. Good management skills increase partners’ trust because the delivery process is handled as expected. 

Also Read About: Logistics Management & Various Aspects You Need to Know

Relationship Building

Distributors work as an intermediary, so they must be able to build good relationships and maintain client loyalty, especially for generic brands in the market when prices and promotional programs are similar between distributors. In this condition, the relationships are important so that clients don’t easily move to competitors.

Negotiation Ability

Distributors must be able to negotiate purchasing prices from the manufacturers and selling prices to the retailer. Ideally, they should be able to buy as cheap as possible from the manufacturer and strive for a high selling price to the retailer/consumer.

Marketing Ability

Not only maintain relations and negotiate, but a distributor must also be able to promote products to new clients. The goal is to acquire new clients/retailers and expand business reach.

Distributors and Supply Chain

A successful company is not only determined only by marketing techniques. The company must also manage the product distribution chain as well as possible, to ensure the business can run smoothly. With the capabilities mentioned above, distributors are expected to be able to become a balancer in a supply chain.

It’ll be difficult if the distributors work manually. Digitization and automation in the supply chain are needed to facilitate the distribution system. 

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