.
Integrated Supply
The Roles of Distributors

 

Fulfilling the needs of customers is the primary business of an industrial distributor.  Distributors achieve this by representing a number of manufacturers in the marketplace, providing customers with an array of products available from one source.

 

However, in today's ever-changing marketplace, this basic premise is becoming clouded.  Buyers can become confused regarding which distributors supply what products, when, where, and how, and which manufacturers they represent.

In addition, the needs of customers have also advanced.  You have a greater necessity for staying current on new technology, technical assistance, and productivity improvements.  Other areas, including competitive pricing, access to inventory, Just-In-Time delivery and the maintenance and servicing of existing products and equipment, are vital to ensure success.

 

On the opposite side, manufacturers are relying more on distributors to provide marketing communications, market research and expertise, and the servicing and maintenance of their products and equipment in the field.

 

There are mostly two "types" of industrial distributors today:

A Mill Supply House carries all types of products used in manufacturing facilities.  These distributors attempt to provide a broad range of products including cutting tools, fasteners, shelving, rags; in essence virtually anything they can sell to the marketplace.

A Specialty Distributor primarily carries one category of products such as machine tools, fluid power products or automotive supplies for example.  Their general intent is to serve the specific needs of only one or two market segments.

 

 

Copyright © 2006 The George Whalley Company