What Is a Distributor?

3PL Glossary
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Distributor

Distributor Definition

A distributor is an entity or individual that purchases goods directly from manufacturers and resells them to retailers, wholesalers, or consumers while managing logistics, inventory, and sales.

Distributor Meaning

Distributors serve as a vital link between manufacturers and the market, ensuring that products reach the intended audience efficiently. They handle bulk purchases, storage, and transportation, often providing value-added services like marketing and customer support. By bridging the gap, distributors allow manufacturers to focus on production while ensuring that retailers have a reliable supply of goods.

A distributor works by purchasing goods in bulk, storing them, and delivering them to your business when needed, ensuring consistent inventory. They manage logistics, allowing you to focus on your core operations instead of worrying about supply chain details.

Partnering with a reliable distributor helps your business save time, reduce costs, and access a wider range of products. By ensuring a steady supply of goods, they keep your shelves stocked and customers satisfied.

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Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.

Distributors are essential to the supply chain as they streamline the distribution process, saving time and resources for manufacturers and retailers. They provide the expertise and infrastructure needed to move products from production facilities to the market efficiently. Without distributors, manufacturers would need to establish direct relationships with multiple retailers, which can be costly and time-consuming.

For example, a small electronics retailer relies on distributors to stock a variety of brands without dealing directly with numerous manufacturers. This simplifies procurement, ensures timely delivery, and allows the retailer to focus on customer service and sales.

FAQs

What is the main role of a distributor in the supply chain?
How do distributors differ from wholesalers?
Can distributors work with multiple manufacturers?