DISTRIBUTORS AND
RETAILERS
Learning Objectives
Discuss the main concept of Distributors
and Retailers
Identify the key functions and benefits
of Distributors and Retailers in the
Supply Chain Management process.
Key Differences between Distributors vs
Retailers
Distributors
Distributors act as intermediaries
between manufacturers and retailers
or end-users.
Distributors enable Manufacturers
to focus on production and
innovation while ensuring that
products reach the end-users
effectively.
Key Functions of Distributors
Bulk Purchases: Distributors buy products
in large quantities from manufacturers,
taking advantage of economies of scale.
Storage and Warehousing: They maintain
warehouses to store diverse products and
manage inventory efficiently.
Logistics: Distributors handle
transportation, ensuring timely and cost-
effective delivery to retailers.
Benefits of Distributors
Market Reach: Distributors help
manufacturers reach a broader market by
efficiently distributing products to various
retailers or businesses.
Efficiency: They streamline the supply
chain by consolidating products from
multiple manufacturers, reducing the
complexity for retailers.
Recap: Distributors
Distributors is a person or company that buys products from
a manufacturer then sells them to stores to end users.
Key Functions of Distributors
Bulk Purchases
Storage and Warehousing
Logistics
Benefits of Distributors
Market Reach
Efficiency
Retailers
Retailers are businesses that sell
products directly to end consumers.
Customer focused
Key Functions of Retailers
Product Selection: Retailers curate a selection of
products based on the preferences and needs of
their target customers.
Inventory Management: They manage
inventory, ensuring that products are available
when needed and avoiding overstock or
stockouts.
Customer Interaction: Retailers interact directly
with consumers, providing a point of sale and
crucial feedback for manufacturers.
Benefits of Retailers
Customization: Retailers tailor their
product offerings to cater to the specific
demands of their customer base.
Market Insights: They provide valuable
market insights to manufacturers based on
consumer trends and preferences.
Recap: Retailers
Retailers are businesses that sell products directly to end consumers.
Key Functions of Retailers
Product Selection
Inventory Management
Customer Interaction
Benefits of Retailers
Customization
Market Insights
