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Manufacturers are focused on production, while distributors accept bulk inventory at one location, where they parcel out individual orders.The distribution model can work on either a tightly- or loosely-controlled level.
Distribution companies usually work on contracts with manufacturers, but they can also operate in an independent and flexible manner.
Distributors are an essential element in the supply chain.
Keep the above tips in mind, and you’ll be running a successful distributorship before you know it!
Distributors are the link between the end customers and the manufacturers of a product.
For example, distribution in the beverage industry is tightly controlled: In many cases, a single distributor manages numerous territories for a large beverage company.
The beverages ship to the distributor warehouses, and the distributor manages deliveries, and even displays and sales in some cases.
However, there are a few points that you should consider before you start your distributorship business.
Starting a small business as a distributor isn’t rocket science, but it does take work, efficiency and knowledge to become profitable.
Also, you will need to contact the manufacturers and work out deals to distribute their products.
Many times this begins with an filling out an online application form on their website or contacting their local sales office.