Those who speak English are at least approximately familiar with the meaning of the word “distributor”. If you make a literal translation, then it means “distributor” or “distributor”. Today’s topic will be devoted to who is a distributor, what is the essence of the functions and tasks performed by him, and what is the essence of distribution in trade.
What is a distributor?
A distributor is an individual or business entity that publicly represents the manufacturer and is engaged in the movement of products from the manufacturer to mass or retail sellers and end buyers.
In fact, the distributor is an intermediary among the manufacturers of goods and their sellers, and in some cases, direct customers who purchase this product.
Both a business entity with a huge turnover and an individual can act as such intermediaries.
The essence of the work and the main functions
If we highlight the key functions of this official representative, then it should be noted:
- provision of marketing services to dealers and end consumers, systematic distribution of the brand and products, ensuring the growth of sales volume and trademark recognition;
- study of the level of demand in the region and the provision of consulting services to manufacturers on the required production volume;
- if the subject of the distributor’s work is technical means and equipment, then the scope of his tasks will also include services for the assembly, adjustment and maintenance of the installed equipment, as well as training dealers in this craft;
- transportation, storage and distribution of finished products;
- warranty service for promoted and sold products, as well as work with returned products and goods with defects.
Distributors can find potential partners for cooperation:
- using business directories, where you can find contacts of manufacturers and communicate with them directly, which will allow you to find the most optimal conditions for cooperation;
- online through search engines or by visiting the web pages of product manufacturers.
If we talk about the reverse side of the issue, i.e. work with the sale of goods, then you can find dealers, outlets or buyers for the development of partnerships:
- referring to the directories of companies;
- directly contacting the retail network;
- using online stores for these purposes;
- by placing an ad in the media.
Documentation for work
In order to engage in such activities, it is necessary to conclude an agreement with the manufacturer, which in legal practice is called a distribution agreement. This document reflects the rights and obligations of each of the parties, the conditions for the acceptance – transfer of products and other working moments.
After signing the document indicated above, the distributor receives a certificate from the manufacturer, which is stamped and signed by the leading person of the manufacturer.
It is quite understandable that each supplier would like to cooperate with as many distributors of his products as possible. This is due to the fact that such cooperation makes it possible to expand sales markets and promote the product as successfully as possible.
What is distribution in trade?
If we talk about marketing or sales, then in this area, distribution should be understood as an activity in the field of logistics that ensures the transfer of goods from the manufacturer to the final consumer.
If we consider this whole process in more detail, then it includes:
- ensuring efficient transportation of goods from one point to another;
- ensuring the availability of warehouses and the distribution of products between them;
- formation of a database that allows you to quickly obtain information about where and in what quantity the goods were placed in warehouses;
- distribution of received orders;
- logistics cost analysis;
- formation of a communication network.
Conclusion
Thus, distribution is of no small importance in expanding markets for products and in stimulating demand for them. And in order to engage in distribution activities and flourish, you need to seriously approach the choice of a company, since there are more than enough of them on the market.