What Role Do Distribution Companies Play in Today’s Economy?

215 Views Updated: 19 Sep 2018
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What Role Do Distribution Companies Play in Today’s Economy?

Given that contemporary economy is immensely fast-paced, the role of distributors is often being questioned. Though a majority of people feel that it makes sense to do away with the middleman, since efficiency is a manufacturer’s ultimate goal, on the contrary, distributors can play a crucial role in establishing a smooth connection between manufacturers and customers. Distribution companies Dubai can expedite response times, enhance the reach of a company, and even create value-added packages that complement a company’s product offering or scope. If they are cut out from the system, whether the buyer or the seller will have to perform these functions, which is turn will have an adverse impact on the bottom line.

There is a common misconception that distributors are only concerned with taking orders and stocking shelves. By actually gaining some insight of the system, one would know that many are staffed with technical experts who have the know-how to deal with issues with specifying and sizing components, improving efficiencies, and troubleshooting failures. They are also equipped to engineer solutions for tough, complex problems, putting to use the best available software and modelling tools.

Since distribution services are adept enough to handle multiple products from various companies, they can bundle components into turnkey systems. Yet another argument in favour of distribution companies is that, they are respond quickly to customer demands, which is a critical factor in today’s highly competitive environment. As local and nimble members, food distribution companies in key geographical areas can provide service to customers at a level that would be difficult or even impossible to execute through headquarters. In order to ensure smooth functioning of any economy, distributors should be looked upon as an integral part of the team and treated accordingly. They can play a unique role that combines the roles of business partners and customers. Distribution companies can also benefit economies majorly if they have a thorough knowledge of your product in order to engineer, sell, and service it.

To put in a nutshell, be it providing engineering support and aftermarket services, reducing costs, or optimization of processes, as well as managing inventories, besides of course, selling products, distribution companies undeniably create value for manufacturers and customers alike.

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