What role do intermediaries play in distribution? (video)
Posted: Sun Dec 15, 2024 9:15 am
Despite their important role, distribution intermediaries do not always have a good reputation. They are sometimes blamed for increasing the final price and even reducing producers' margins. However, it is essential to maintain a fluid relationship between all the members of the chain.
POST CONTENT
Lower volume of transmissions and transactions
They act as a sales force
Financing
Physical displacement
Storage Management
Neither bad nor essential
As we have explained above , distribution involves a complex and extremely important marketing task . In this case, the costs of developing this activity are shared with the intermediaries. Otherwise, they would have to be borne entirely by the producer or retailer's own organization.
Play Video
Lower volume of transmissions and transactions
By using intermediaries, the number of transactions executed by the producer is greatly reduced. If they did not exist, each producer would carry out one for each consumer or final distributor. By including them in the chain, many producers contact the same wholesaler and this one with the final distributors. In addition, in between, there may be different operators who carry out important pharmacies email list actions so that the product arrives in the best conditions.
This simplification of distribution relationships brings important advantages, including:
The producer enjoys great administrative relief .
Many operating costs are passed on to the intermediary , who handles the processes with more specialized resources.
Wholesalers often work with multiple product lines , providing greater variety to retailers .
Infographic challenges for distributors
According to a report by the Eberdeen Group, 37% of distributors and wholesalers need to reduce costs to be more profitable.
They act as a sales force
Due to their position within the chain, they play a double communication role :
For retailers , they act as a purchasing agent.
They act as salespeople for manufacturers.
Furthermore, in many cases, it is the intermediaries who carry out promotions at the point of sale through a set of activities, among which the following stand out:
Delivery and adaptation of the materials provided by the producer.
POST CONTENT
Lower volume of transmissions and transactions
They act as a sales force
Financing
Physical displacement
Storage Management
Neither bad nor essential
As we have explained above , distribution involves a complex and extremely important marketing task . In this case, the costs of developing this activity are shared with the intermediaries. Otherwise, they would have to be borne entirely by the producer or retailer's own organization.
Play Video
Lower volume of transmissions and transactions
By using intermediaries, the number of transactions executed by the producer is greatly reduced. If they did not exist, each producer would carry out one for each consumer or final distributor. By including them in the chain, many producers contact the same wholesaler and this one with the final distributors. In addition, in between, there may be different operators who carry out important pharmacies email list actions so that the product arrives in the best conditions.
This simplification of distribution relationships brings important advantages, including:
The producer enjoys great administrative relief .
Many operating costs are passed on to the intermediary , who handles the processes with more specialized resources.
Wholesalers often work with multiple product lines , providing greater variety to retailers .
Infographic challenges for distributors
According to a report by the Eberdeen Group, 37% of distributors and wholesalers need to reduce costs to be more profitable.
They act as a sales force
Due to their position within the chain, they play a double communication role :
For retailers , they act as a purchasing agent.
They act as salespeople for manufacturers.
Furthermore, in many cases, it is the intermediaries who carry out promotions at the point of sale through a set of activities, among which the following stand out:
Delivery and adaptation of the materials provided by the producer.