Currently, many of the largest corporations, for the convenience of organizing sales and optimizing the delivery of their own products to final consumers, are organizing sales networks that include several additional links besides the standard seller-buyer links. In particular, distributors are direct representatives of the company, shipping directly from the supplier’s warehouses.
If we consider the whole chain by which the movement of
finished products produced by large holdings takes place, we can distinguish several of its main participants. These include, in addition to the enterprise producing the goods, dealers and distributors. This provides a high degree of convenience for customers and allows you to maximize the geography of company customers. There are several key differences between these two offices. The dealer, in particular, is engaged in
direct sales of goods directly to its consumer. The products are delivered to him by an official distributor, who, in turn, purchases them directly from the manufacturer. Thus, the dealer has the opportunity to communicate with the end customer directly, carrying out both wholesale and retail trade. Its capabilities allow it to study in detail the consumer market, revealing both positive opinions about the proposed product, and negative. And distributors are exclusively wholesale companies shipping products only to dealers. The task of a representative with such a status is the global expansion of the sales geography of the manufacturing company, the search for organizations that can wholesale the finished product.
In order to become a distributor, it will be necessary to conclude a contract directly with the manufacturer of the goods. Typically, this kind of agreement contains certain conditions, the implementation of which allows you to get the coveted status from the manufacturer. These, as a rule, include such moments as the minimum volume that a representative will have to ship monthly, as well as payment options for the goods received. Often, the manufacturer provides a deferral of payments, however, it can be minimal and not exceed 3-5 days. In addition, the company, which produces its own products, officially gives its representative the right to use the registered brand of the product, ready-made
advertising materials and any other privileges that ensure the distribution of goods in different regions.
Thus, distributors are official representatives of the supplier company, having the ability to make shipments directly from the manufacturer and owning certain privileges to use the company's goodwill in relation to the goods sold. Its main task is to expand the geography of the
client base for products shipped under a distribution agreement, and to search for new dealers and points of sale.