Distribution is the process of delivering or selling products and services from the producer or manufacturer to customers. As businesses intent to reach more locations it becomes crucial to expanding distribution networks to make sure that products reach the customer’s safely and timely. It requires proper sync between all parties involved in the distribution channel for ensuring a smooth process.
Wholesale distributors are responsible for acquiring goods, storing them, preparing them for sale in smaller quantities to their customers and then delivering them.
Success in wholesale distribution hinges on gaining a good understanding of customer needs, market trends, costs and price points; building strong relationships with business partners; and maximizing operational efficiency. Wholesale distributors must build solid “upstream” relationships with the suppliers or manufacturers of the goods they buy in bulk. They must also develop trusted relationships with their own “downstream” customers, be they retailers or businesses like restaurants, contractors or stores.
In some cases, wholesalers may serve as dropshipping providers for brick-and-mortar or ecommerce retailers. In a dropshipping arrangement, the retailer doesn’t actually stock the product it sells to customers. Instead, the retailer accepts payment and then passes the order to the distributor, which ships the product directly to the customer.
Why are distribution services important?
Distribution is a vital element of any business operation. Without its efficient service, any industry business cannot ensure a good relationship between customers and manufacturers in providing the best possible service.
For a successful distribution service companies need to have constant feedback process so that all the parties are satisfied and if any corrections have to be made for improvements, it is done on a timely manner.
How to ensure efficient Distribution service
Distribution service involves carrying a smooth operation of factors like:
- Processing of orders: As the services receive an order from customers, they need to have a proper plan in place for properly delivering them. It includes accumulating the stocks, packing and loading it and delivering them on time.
- Packaging and transportation: Giving optimal packaging for any type of product is very important so that the end customer receives them in the original condition. They need to give flexible pick-up, and optimum transportation service for building trust among the customers. Every order needs to be handled with care which helps to build good long-term relationships with customers and manufacturers.
- Customs and Import Services: As the business grows over the world, international distribution becomes a crucial factor. An expert and reliable distribution involve proficient handling of customs and related import/export process that aid you in effectively meeting all the trade norms and procedures. This ensures that your goods are effortlessly moving across borders without difficulties.
- Inventory Management: Distribution relies heavily on maintaining a good level of inventory. This requires an optimal location to meet the adequate demands for ensuring swift stock renewal and optimal delivery. With good accessible storage space, they will ensure that goods are strategically positioned in effectively spreading to all the parts of intended locations.
- Logistics Planning: Deciding the mode of transport is very important for all types of orders. For larger orders, loading and unloading should be properly planned so that they do not create problems in later stages. If the delivery is overseas, then they should have all the agreements ready to obtain all the permissions. For local deliveries, they need to plan an optimized route and required transportation modes. By having flexibility in modes of delivery and meeting customer requirements.
- Right communication: A clear communication is required at both ends to ensure that the right items are shipped and customers are aware of the delivery schedules. If the shipment gets delayed due to any unavoidable reasons, then distribution service management needs to inform all the concerned parties ASAP.
Distribution services can make or break the business of any type of company. An efficient distribution system implies that the company has a greater chance to increase its sales and stay ahead from its competitors. In today’s extremely competitive market, the company that can reach its goods faster and wider into the market smartly than its competitors will withstand the ups and downs in the market and constantly lead the competition. It is very critical for any kind of industry or service as any level of smart pricing, product promotions will not come to rescue if they are not distributed timely and proficiently.