In theory, dealers, as the core members of circulation industry, have many functions for upstream manufacturers, such as warehousing, distribution, financing, information feedback, product collection, sales force extension, after-sales service and so on. However, in practice, in order to control channels as much as possible, manufacturers' sales teams often take the initiative to undertake sales functions of distributors (such as negotiations with retailers, product entry, display, order acquisition, promotion activities, etc.), information collection and feedback (well-trained factory sales team itself has the responsibility of collecting market information), and after sales service (once consumers complain, manufacturers are more anxious than the distributors, and more duty bound).

The dealer's function of local warehousing, distribution and financing (capital advances) is remote and direct. cost Too many factors, such as too high, limited delivery time, limited fund size and risk of collection, can not be replaced by the overwhelming majority of manufacturers. This is the unique advantage of professional channel distributors, and is also the basis for the survival and development of such dealers.

In order to firmly control the whole market and channel P & G, Johnson, Nestle and other European and American companies often set up exclusive sales teams at the distributors, which are fully managed by the factory representatives. As long as the distributor has sufficient funds, sufficient warehouses and transportation capacity, all other wholesale and sales businesses are contracted out by the manufacturers.

Even though some manufacturers are directly involved in the business, they are subject to the dual constraints of distribution cost and time limit. Many manufacturers still have to ask local distributors for distribution and give a certain amount of gross distribution fee.

Manufacturers KA direct supply, indeed the general trend, but WAL-MART, Carrefour, Wuming, Beijing Hualian and other stores all over the country, how to timely distribution? In addition to Coca-Cola, Procter & Gamble and other large warehouse companies, other companies, the only way to solve the problem is to seek the help of distributors in the store, the general cost of distribution 3%-8%.

Locating in a professional distributor, it has the advantages of simple management and stable business, and it should be a good choice for some dealers with sufficient capital and limited business capability. However, Professional distributor The alias is "advanced Porter". The scale and profit of enterprises are relatively limited. Dealers make Xin Kuqian's hard-earned money. For some enterprising and comprehensive management and strong bosses, such strategic transformation is too simple and may be difficult to achieve their life value. What they may need more is an integrated / diversified transformation strategy.