Distribution channels play a significant role in the success of every business as they are responsible for selling the company’s products and services to the end customers. It is through these distribution channels a company reach its customers, hence, selecting the right distribution channel is very important for any business. Companies looking for distributors should select a channel based on the nature of the products or services they provide.
The length of distribution channels can vary significantly. Sometimes it may be short, where a manufacturer is selling products directly to the customers, whereas, in some other cases it will be a network of multiple channels, including distributors, wholesalers, retailers etc. Therefore, you have to select one based on your product. If your products are easily perishable, select a short one, for instance wholesale distribution companies. If you produce durable products, you can choose different channels for the extensive distribution of your products.
All the distribution channels have some common objectives. Their ultimate aim will be to complete them. Following are some of these objectives for which the distribution channels are usually used.
Movement of goods
Distribution channels are mainly used to facilitate the flow of goods. Without the help of these channels, the products produced by a manufacturer cannot be brought to the market where they are made available for the end-user. Every business needs them for bringing the goods from the place of production to the place of consumption. Hence, all the components of distribution channels play an important role in the movement of goods in the market.
Availability of goods
Goods should be made available to the consumers when they want and where they want, and in desired quantities. This is ensured by the distribution channels. They distribute the items so that the customers can purchase them at their convenience. They help to meet the customer-demands by transporting the goods to different geographical location so that they are accessible for everyone equally.
Protection of goods
Distribution channels are also responsible for the warehousing of goods and transporting them to different locations. They store the products in a convenient location so that they can be transported easily to the desired destinations. Hence, they provide handling of products and their protection till the goods reach the end customers.
Another objective of distribution channels is to reduce the price of the goods so that they will become more affordable for the users. This can be done by bringing effectiveness in the process of distribution. Hence, the products will be accessible for everyone within different budget ranges.