A distributor is an intermediary entity in the supply chain that purchases goods in bulk from manufacturers or producers and resells them to retailers, other businesses, or end customers. Unlike agents or brokers, distributors take legal ownership of the inventory they handle, assuming financial risk and responsibility for storage, logistics, and often marketing activities. Distributors serve as a critical link in the distribution channel, bridging the gap between production and consumption by managing the flow of goods, information, and payments across the supply network.
Key Characteristics
- Inventory Ownership and Risk
- Logistics and Warehousing Capabilities
- Value-Added Services
- Market Coverage and Customer Relationships
