What is A Distribution Company?

Posted by shrikantsharma on March 9th, 2018

A distribution company has the task of making a product or service available for the consumer or business user that needs it. This can be done directly by the producer or service provider, or using indirect channels with distributors or intermediaries.

What are the strategies of these distribution companies operating in Dubai dependent upon?

Strategies of Distribution companies in Dubai are basically dependent on the kind of product that is being sold. As a distributor company, you have to be clearly in the loop about the kind of product/service that will be distributed by you based on organizations that are working with you. Distribution companies in UAE function as intermediary organizations which ensure storage and delivery of products for easier selling to major retailers. These channels come with their own levels of varying complexity or simplicity, whichever way you look at it.
 
What does a distribution company essentially do?

A distributor company basically operates like a wholesaler who has additional responsibilities. They take care of the orders from retailers along with selling the products which are entrusted to them by companies. They function as the intermediary organizations who take care of sales, order management and coordination between the producers of certain products and the ones who retail them. They are always on the lookout for newer sales opportunities based on consistent analysis of market based trends. A distributor company usually emphasizes on a specific market or location which helps them in building great ties with producers of certain products. They usually have deeper ties with a few companies as opposed to wholesale players.
 
What are the advantages and disadvantages of using a distribution channel?

Whenever any consumer thinks of purchasing any specific item, he/she will always try to get an idea of its overall value which is again impacted by multiple factors. These include aspects like overall availability, delivery and the like. Someone who is marketing that particular product should also analyze the value added by the distribution company to the overall enterprise. The distribution services should have certain specific benefits. Some of these may include the following:
 
Cost Saving
Time Saving
Customer Convenience
Customers can buy in small quantities
Resellers help in boosting sales

Disadvantages are as following:-
 
Revenue loss
Loss of Communication Control
Loss of Product Importance

Almaya Distributions with an extensive network capability allows us to increase food consumption, access to food, increase food security, from sourcing to marketing to distribution and on to end-user consumers.

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