Relevance of distribution companies in new-age economy
Posted by Shrikant Sharma on September 20th, 2019
According to the popular misconception, the only role of distributors is to take orders and stock shelves. However, those that have some insight of the system 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 also have engineer solutions at their disposal to cope with tough, complex problems, and they also employ the best available software and modelling tools.
Distribution companies in UAE play the dual role in being a business partner as well as a customer simultaneously. Manufacturers should treat distributors as an essential part of their teams, and build relationships with them accordingly. They should also spare some time to make the distribution companies aware about the product. They act as the middlemen between manufacturers and the end-users, ensuring that the products reach the target destination, in an intact and timely manner, but things are now changing. It has become an emerging trend amongst manufacturers and retailers to invest in their own distribution networks, effectively doing away with the middleman and supplying products to the consumers directly.
Again, a solid distribution network can accelerate the speed at which manufacturers can respond to the demands of customers. In today’s times, it is crucial to be able to respond to customers quickly and in real time. Being more localized and nimble, usually distribution companies can offer a faster response. Also, they can also prove to be highly beneficial for users by making the buying process more streamlined and often lowering the costs. Distributors also have the advantage of reducing inventory and service burdens for the manufacturer as well as the user. In the modern-day economy, this is even more significant since many users have been compelled to cut back on in-house inventories and service staff.
It is also interesting to note that being adept enough to handle multiple products from various companies, distribution services can bundle components into turnkey systems. In fact, manufacturers should not simply hand off C and D level accounts to distributors, but look up to them as an equal part of the sales force. As local and nimble members, distribution companies in Dubai in key geographical areas can provide service to customers at a level that would be difficult or even impossible to execute through headquarters. Distributors should also have sufficient knowledge about the manufacturer’s product in order to sell 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 Dubai undeniably create value for manufacturers and customers alike.
