1. Definition

A distributor is a company or individual acting as an intermediary in a supply chain. Distributors purchase products in bulk from manufacturers and sell them to retailers, wholesalers, or end consumers. They typically handle tasks like storage, logistics, and sales. Additionally, they often provide services such as marketing, technical support, or training to ensure successful product placement in the market.

2. Scope

Distributors play a vital role across nearly all industries. They are particularly prevalent in sectors such as electronics, automotive, food, and healthcare. Their primary purpose is to ensure the availability of products in different markets while helping manufacturers expand their reach. Furthermore, they support smaller retailers, who may lack the resources to establish direct contracts with large manufacturers, by serving as a link in the supply chain.

3. Types of Distributors

Distributors can be categorized based on their focus and function:

• Exclusive Distributors: These distributors have exclusive rights to sell a specific manufacturer’s products in a defined territory.
• Wholesalers: Focused on selling large quantities of products to retailers or other business clients.
• Specialized Distributors: They specialize in specific products or industries, such as medical equipment or IT products.
• Multi-Channel Distributors: These distributors leverage various sales channels, including physical stores and online platforms, to reach a broader audience.

Through their varied roles, distributors enhance the efficiency of supply chains, providing value to manufacturers and customers alike.