5 Types of Distributors in Supply Chain

Types of distributors

Distribution activities can be simple or complex, depending on your choice. Sometimes companies/brands use several distribution channels or types. Read more about the types of distributors commonly found in the supply chain flow.

Direct Distributor

Direct distributors are parties who distribute products directly to consumers. Manufacturers play a role as distributors of the product itself. This type of distributor is the simplest type without any other intermediary. Known as a one level channel, which sells products to customers through manufacturing plants, ordering via email, e-commerce websites, offline stores, and door-to-door sales. Found in several industries such as automobile, technology, and agriculture. The advantages are customer trust and experience.

Indirect Distributor

Indirect distributors involve additional parties to expand distribution networks and reach more consumers. Examples: agents, brokers, commissioners, importers, wholesalers and retailers.

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Exclusive Distributor

Type of distributor that operates exclusively in several authorized outlets and specific locations to maintain the exclusivity of the related brand. Usually applied in luxurious business . Example: luxury bags available in a few official stores in selected areas. This type of distributor has very great control over contracts negotiation and distribution systems because goods are sold in limited quantities.

Intensive Distributor

This type of distributor will distribute products in bulk. Spread the product in the market as much as possible in various sales channels. Intensive distributors involve supermarkets, malls, and department stores. They sell products at affordable prices. 

Selective Distributor

Selective distributor is a mix of exclusive distributors and intensive distributors. This type of distributor balances choosing the right location with more sales opportunities from selective outlets. Sales are carried out by involving other outlets outside the officials. 

Those are some types of distributors that you need to understand. Pay attention to the distribution flow you want to use according to the type, price, and target audience.

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