What advantages do industrial distributors offer? What are some of the disadvantages of using industrial distributors?

Question

What will be an ideal response?

Answer 1

An industrial distributor is an independent business that takes title to products and carries inventories. Industrial distributors offer sellers several advantages. They can perform the needed selling activities in local markets at a relatively low cost to a manufacturer and reduce a producer's financial burden by providing customers with credit services. Also, because industrial distributors usually maintain close relationships with their customers, they are aware of local needs and can pass on market information to producers. By holding adequate inventories in local markets, industrial distributors reduce producers' capital requirements. Using industrial distributors has several disadvantages. They may be difficult to control because they are independent firms. Industrial distributors usually sell standardized items, such as maintenance supplies, production tools, and small operating equipment. Industrial distributors may be difficult to control because they are independent firms. They often stock competing brands, so a producer cannot depend on them to promote its brand aggressively. Furthermore, industrial distributors incur expenses from maintaining inventories and are less likely to handle bulky or slow-selling items, or items that need specialized facilities or extra selling efforts.