distributors

Distributors are intermediaries in supply chains that purchase goods from manufacturers and resell them to retailers, other businesses, or directly to end users. They often handle warehousing, inventory management, marketing, and logistics, and may provide technical support or after-sales service. Distribution arrangements can be exclusive, non-exclusive, or selective, depending on agreements with manufacturers and market strategy.

Key functions include procurement, storage and stock control, order processing and fulfillment, credit facilities and risk management, demand forecasting, pricing and promotions, and product training. Distributors also coordinate transportation and may offer value-added services such as packaging, labeling, installation, or warranty handling.

Types and channel roles vary by industry. Industrial distributors serve sectors such as machinery, chemicals, parts, and equipment; consumer goods distributors supply retailers across multiple categories; and value-added distributors provide additional services like system integration, customization, or technical support. Distribution agreements may grant exclusive rights in a territory, grant non-exclusive access, or use selective criteria for reseller eligibility.

Relationships with manufacturers and retailers aim to extend market reach, provide local market knowledge, manage inventories, and deliver local customer service and warranty support. Authorized distributor programs help maintain brand standards and pricing discipline, while reducing channel conflict.

Regulatory considerations include competition law, contract law, and compliance with labeling, safety, import/export, and product-safety standards. Intellectual property protection and adherence to licensing terms are also important.

The digital era has expanded distributor roles to include online catalogs, B2B marketplaces, ERP integrations, and data-driven demand planning. Some distributors also operate direct-to-consumer channels or employ drop-shipping arrangements from manufacturers in e-commerce contexts.