Functions of Distributors

Distribution process is one of the keys in supply chain because not only does it affect costs, it is also correlated to customer satisfaction and the reputation. Therefore, distributors play a crucial role and function in the supply chain. What are the functions of distributors? Find tips to become an optimal distributor in the following explanation

Purchasing

Distributors are responsible for buying goods/services from the manufacturers (directly) to be distributed to the next party in the supply chain.

Storing

After making a purchase, these items are stored for a while before being distributed. That is why distributors must have a warehouse when buying physical products. In addition, the distributor bears the risk of the stored goods, for example, if they are damaged, expired, or cannot be resold.

Find Out More: 5 Steps to Maintain Product Quality in Warehouse 

Selling 

The selling function places the distributor as a party that resells goods to agents/consumers. 

Transporting 

The distributor carries out the activities of moving goods from his warehouse to the buyer.

Read More: Reduce Shipping Cost With Technology

Sorting 

Serves as a party that performs classification in sorting various products purchased according to type, size, and other specifications.

Informing 

Distributor becomes an extension of the manufacturers to convey information about the product/service distributed to the buyer, such as product info, details, prices, availability, and applicable terms.

Promotion

This function involves distributors’ role in promoting the products including discounts, comparisons with competitors, merchandise, etc. 

Tips for Running an Optimal Distributor Function

Provide Attractive Price Offers

Low-cost products are certainly buyers’ favorites. Give attractive discounts and promo systems to your potential buyers.

Provide The Best Service

Besides a low price, accessible distributors, smooth communication, and friendliness also support the optimal functioning of distributors. Don’t forget to provide the best service to your customers.

Easen Shopping Process

As a distributor, ensure you enable the series of smooth buying processes (from bidding to processing payment).

Fasten Goods Turnover 

It is undeniable that the turnover of goods in the supply chain is a challenge for distributors. Be sure to have a system that can monitor your inventory turnover more transparently.