Introduction

Consumers would not be able to benefit from goods and services unless and unless they have access to them. By making products and services more quickly and readily available to customers, distribution (or its more advanced equivalent, supply chain management) will bring value to them.

And if a manufacturer has a product or service that customers need, it is useless unless it can reach them quickly and easily. As a result, delivery is extremely important. If you discover a very useful new tool, for example, you’ll need a distribution network. However, you want to get the tool in places where people can get it easily. To put it another way, you need good retailers in your distribution chain. If you have good retailers, you must also get your items to them on time. To get your goods to the retailers, you’ll need good wholesalers and good transportation systems.

What is distribution?

The practice of selling and distributing goods and services from a producer to a consumer is distribution. This often refers to as product delivery. As companies become more global, it becomes more necessary to strengthen distribution. It will keep consumers and other members of the distribution channel happy. Many people take part in distribution, depending on the duration of the distribution channel.

What Is Distribution's Importance?

Distribution is an important aspect of operations. A business cannot provide the best possible service unless it has a position that monitors and strengthens the relationship between suppliers and consumers. When delivery bottlenecks occur, deliveries delay, consumers, retailers, and suppliers become enraged and lose their confidence. A continuous feedback loop must be there for product delivery to be fully efficient. It should ensure that everyone is happy with the process. Also, that any changes that can be made are made.

 

When it comes to dropshipping and consumers purchasing products online, merchants and customers don’t get to sample the product before they purchase. As a result, customers have to believe that it will arrive as described in the images. This means that the distribution system must be capable of delivering timely responses and feedback across the board.

What Exactly Does a Value-Added Distributor Do?

A value-added distributor (VAD) provides select, pack, and ship services for the goods they deliver. Also, it differentiates itself by offering exclusive services and solutions that support their customers. There are a variety of approaches, but at MGH distributors, we’ve worked for many years to deliver creative solutions alongside our parts, and we’d like to share some of the concepts that have proven to be beneficial to us, our suppliers, and our clients.

Any factor applied to a product to increase its value or price, according to the basic concept of value addition. Value addition can be divided into three categories: pre-sales, help sales, and post-sales.

Pre-sales

This is one element of value addition that the majority of the channel overlooks. However, this is just as important as sales or after-sales support, particularly when a new product is introduced into the channel.

Many partners reach the market without a good understanding of the business’s advantages and disadvantages. That’s where a dealer can help by educating them on the risks of deliverables and credit.

True value-added distributors motivate the channel by informing them of new products, investing in marketing strategies, and, most importantly, ensuring that the product is available nationwide.

Post Sales

The product’s warranty is promised by the manufacturer. However, it is the distributors’ responsibility to supply it. As a result, distributors must set up systems to monitor goods under warranty and take measures to get closer to both channel partners and end customers. The majority of distributors are either implementing new technologies or updating existing ones.

“Value addition isn’t limited to sales. It also includes the post-delivery period. The distributor should put in place structures to provide low-cost support and ensure that the entire supply chain functions as a single entity.”

Factors That Must Be Considered

Any distributor should start by providing the right kind of service to its manufacturer partners. “The channel partner is a tool for entering the market.”. The distributor should provide proper business strategy guidance to the channel.”

Similar distributors specialise in various fields. They will hone this experience to the point that it benefits both the producer and the channel partner.

Distributor add value to a product

Being a middleman between a product producer and the buyer of those components is what the component distribution industry is all about. The dealer, like all middlemen, exists because they can add value to all parties in a transaction. As much as all consumers would like factory direct pricing and as much as factories would like to keep the middleman’s mark-up, approved distributors exist and thrive because their connection in the supply chain meets all parties’ real needs.

Distribution Product

Following are some ways in which distributors add value to a product:

Being a middleman between a product producer and the buyer of those components is what the component distribution industry is all about. The dealer, like all middlemen, exists because they can add value to all parties in a transaction. As much as all consumers would like factory direct pricing and as much as factories would like to keep the middleman’s mark-up, approved distributors exist and thrive because their connection in the supply chain meets all parties’ real needs.

Knowledge:–

They have a thorough understanding of their clients and distribution region, and can provide you with useful consumer insights.

Provide credit:–

Many distributors provide credit to small businesses and may receive payments on a regular basis.

Stockholding:–

They have storage space, which eliminates the company’s warehousing needs.

Delivering in bulk to your distributors would save you money on transportation because distributors will supply smaller amounts to their outlets.

Frequency:–

Distributors provide monthly delivery and, in some cases, daily delivery.

Distributors will provide distribution services after business hours and on weekends.

Complementary goods and services:–

Manufacturers provide a wide range of products as well as value-added services.

Distributor:–

Initiated deals will help you boost your sales even further.

Competitor activities:–

if you have a good relationship with your distributor, they would be able to provide you with details on competitor activities.

Feedback:–

The distributor sales staff will talk to their customers about new concepts and product offerings and give you useful feedback.

Conclusion

Distribution is a multibillion-dollar business for a reason. It’s because producers depend on distributors to help them carry and sell their products. Without this business relationship, they wouldn’t be able to fulfil the needs of thousands of plant locations.

A distribution company’s mission should be to ensure that the best product is available at the right time in the most reliable and cost-effective way possible. Distributors must not only obtain the commodity from the channel and sell it to the next level, but also ensure that it sells to the next level effectively by generating demand. The chain as a whole could be harmed by a single weak link.

It’s no simple achievement to figure out where and how to add value to your customers and in the supply chain, and then transform it into a workable plan in the current market climate.

MGH distributors Yangon, Myanmar adds various values to a product by helping manufacturers in a variety of ways that are beneficial to them.

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