Know more about how product distribution works

A distribution channel refers to the flow of business that takes place between a manufacturer and a consumer. It is the path followed by a transaction. Distributors play the role of intermediaries that are responsible for delivering and housing products for producers to sell to retailers. These channels vary from being relatively simple to increasingly complex. In a direct distribution channel, the produce works directly with the consumer. On the other hand, an indirect channel involves intermediaries into the sales flow. If you are looking to expand into new markets or to level up your distribution strategy, you need to be aware of the different levels of distribution:
 

 

a. Level zer: this is the simplest channel. It involves a direct sale from manufacturers to consumers minus any intermediary.

b. Level One: this channel comprises one intermediary as the middleman between the producer and consumer, say a retailer between manufacturer and consumer.

c. Level Two: This involves two intermediaries between producer and consumer. For example, a wholesaler selling to a retailer who then sells to the consumer.

d. Level Three: this brings into play the role of an agent or a broker. Agents working on behalf of companies have to deal mainly with wholesalers. Thereafter, the wholesalers sell to retailers who then sell to consumers.

When it comes to the association of brands with wholesale distributors, the former have a responsibility of overseeing the process and keeping retail execution errors such as out of stocks and distribution voids at bay. For this, brands need to establish clear lines of communication between managers, sales teams, and distributors to ensure that information can be obtained as quickly and as effectively as possible. Brands can stay ahead of the game by forming better relationships with their distributors. This also paves the way for easier expansion as compared to brands that communicate on an ad hoc basis.

When it comes to food distribution companies, they purchase products from a manufacturer and sell them to retailers and restaurants, and it would perhaps take you by surprise to know that the industry is worth $424.7 billion a year. If you are keen to foray into the world of wholesale food distributors, it would interest you to know that Almaya Distribution is a major force to reckon with, in this field, having successfully introduced more than 50 of the world’s finest food brands to the region.