Role of Distribution
Service Credit - Is one of the main features of distributors, which the retailer can make payments on credit without having to go through complicated procedures like financial companies. Because so retailers are listed as customers of distributors that have been previously validated, then the credit payment facility can be used by retailers within certain limitations. For example, each retailer has a ceiling of purchase, the payment period, the limit value of each transaction, as well as methods of payment. It is also a concern for the owners of the product to not deal with retailers directly, because it manages so many customers / retailers certainly an effort that is not easy and is not a primary function of the manufacturer.
One-Stop Shopping - Ideally, every retailer wants a place as a source of supply, so do not bother to contact so many suppliers. Certainly a good distributor who can provide a complete range of products required by the retailer. Distributors who have only a narrow range of products will have little problem in optimizing business performance. First because it does not have sufficient power supply, then usually competitors that do not have enough power dependence.
Distributor in this case also positioned itself as a party that knows the needs of the customer / retailer, so the distributor can determine which products should be provided at each retailer is also at the same time introduce new products released in the market.
Business Consultant - Distributors do not just sell products but also responsible for providing education about the products being sold, so that the product offered more have a stronger appeal in the marketplace. Including distributors provide a solution if there are products that are considered difficult to be sold by the retailer. Because the distributor would not want a return of products purchased by retailers.
Inventory Management - We have many retailers who do not want to save too much stock in their warehouse. Retailers prefer the more often the frequency of purchase, so the retailer does not have to invest too much storage space. However, the frequency that is too often not profitable for both parties. Distributor should specify the frequency of the most ideal for any retailer to make a purchase. This is an added value distributor that is perceived by the retailer.
Inventory management is not just limited to calculate how much stock to be provided, but also the physical management of the logistics function. This Difungsi implementation of discipline "Good Distribution & Storage Practice". At present the demand to comply to various regulations and international standards related to the absolute quality of the product to be distributed to final consumers.
Service Delivery - Delivery is a fundamental responsibility, where if the retailer requires the distributor to have the task of delivering a cost distributors everywhere except in accordance with the agreement. Today many functions that have been started in the delivery of outsourcing it, as demand tends to fluctuate and complexity in achieving efficiency. Delivery is the discipline of its own function that can add value as well as competitiveness, in this case is the speed. While retailers are reluctant to hold too much stock, so delivery should be more frequent. On the one hand this is a waste that must be paid to reduce working capital.
Product modification - sometimes to facilitate the sale and help smooth the necessary modifications to the sale of products tailored to the available market. Surely its minor modifications, for example, is bundling, labeling, and positioning. Modifications made to meet the needs of retailers, especially if the product / service is "Slow Moving" or even not move at all sales.
Market Development / Business - Distribution is also synonymous with sales, coverage, and growth. Distributors is a key element in business. Business development related to a range of distribution. So that the initiative is as it should from the distribution that will determine the direction of business development. What kind of role distribution? sensitive to see the "wallet share", new points of sale, relationship with the retailer, and so forth.
Product training, educating retailers and consumers is a function / role of the marketer. But there is no harm in running the distributor also functions as the added value it will provide its own benefits. Best practice here is to discuss the role of active distributors and provide added value. So it is not his time anymore distributors shut down or restrict the marketing function when there is a role that is also running side by side. In the end, each individual may have limitations, and that's where the point to complementary.
Ombudsman - Complaint Handling simply means, but the distributor is not only courier service provider functions as a whole and has the full attention of the products and services are also provided. Because the retailer to communicate daily with the distributor, so if there are any problems, complaints, things are delivered to the distributor.
In the end, if managed properly from the manufacturer, distributor, to retailer, will be able to achieve process efficiencies as well as the development of a more active market. Distributors have a central role and a major factor in terms of ensuring the availability of the product at point of sale as well as encourage the acceleration of the movement of inventory to sales at the retailer.
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