Choose a reliable distributor

How to pack products, which route to send, are intermediaries needed? Our experts know the answers to these questions. Distribution logistics manages inventories between various wholesale or retail buyers, distributes goods to storage locations, plans the process of selling goods, delivery and transportation control. The target audience for these services is end-users, retailers and service providers.

Distribution task is the distribution of goods, organization of reception and sales of goods from manufacturers. Logistics distributors or distributors are the official representatives of the companies that are involved in the distribution.

A distributor, as an intermediate link in the sequence of selling products from a manufacturer to a dealer, a retailer and a consumer, can be a company that purchases wholesale (shops, supermarkets) or an entrepreneur purchasing products from large industrial manufacturers. The main feature is the availability of exclusive rights to distribute the product at an agreed price.

The distribution of consumer goods requires a large staff and a representative office with a dealer network. The general distributor sells goods using his resources. An exclusive distributor sells the product through authorized dealers and retailers. In order to become a distributor, it is necessary to conclude a distribution agreement with the manufacturing company and obtain an appropriate certificate, which confirms the right to officially represent this product on behalf of the manufacturer.

The alliance between the distributor and the manufacturer aims to stimulate sales and gain the trust of end-users. Marketing programs, special offers, promotions taking into account the growing role of Internet technologies are a small list of responsibilities that gives the distributor’s team the ability to manage turnover, liquidity and sales figures. By receiving information about the dynamics of sales, the distributor, together with the manufacturer, can adjust the assortment and pricing policy.

The need for distributors arises when the manufacturer is located in another country or region. Then an intermediary company appears, which assumes transport costs. The distributor’s profit is formed by purchasing goods at a manufacturer’s discount with further sale at full cost.

The number of responsibilities a distributor has to do depends on the nature of the product he sells. The most important goal is fast delivery of products to the market. Responsibilities include:

• Marketing promotion of products;
• Formation of a distribution network and solving transport problems;
• Control of stock availability, work on returns;
• Warehousing, storage and handling of products;
• Conclusion of transactions related to property rights to a consignment of goods;
• Formation of the final price per unit of goods;
• Monitoring and information support of logistics activities in distribution.

The main distributors in Ukraine are presented in the “logistics partner” tab on the WareTeka platform. We see representative offices of Bayadera Logistics, Imperial Tobacco Ukraine, ASBIS Group, ELKO, Eastern Beverage Trading, BaDM, Pilsner-Ukraine.

ELKO Group is one of the largest distributors of IT products, consumer electronics and integrated solutions. The Bayadera Logistic company specializes in the distribution and promotion of elite alcoholic beverages. A large-scale network carries out direct deliveries to 35,000 retail outlets in the country.

The 3PL logistics provider is forced to compete with the distributor for the supply chain. A distributor, possessing professional technologies for sales and product promotion, can work in the 3PL services market. The positive aspects of a distributor’s work with operator elements are the presence of optimized supply chains, experience in sales forecasting and assortment management.

Distributor companies can offer better service and faster delivery to their customers, unlike manufacturers. When choosing an intermediary, it is necessary to assess the territory of possible sales and the quality of his work. The products must be delivered to the end user at the right time and in the required volumes.