Manufacturers often delegate selling duties to intermediaries, like distributors, wholesalers, and retailers, surrendering some control over sales and distribution to reach the desired market efficiently.
These intermediaries, with their extensive networks and industry expertise, bridge the gap between producers and consumers.
They complement the manufacturers by transferring information, promoting products, engaging potential buyers, aligning products with buyer needs, and negotiating prices with consumers.
For instance, retailers can provide vital market information to manufacturers, promote products in-store, and negotiate prices with customers.
Furthermore, intermediaries support transaction completion through physical distribution, financing, and risk management. A distributor, for example, might store products, offer credit to retailers, and assume the risk of product damage or loss during transit.
Suppliers are equally vital in delivery networks, as they provide manufacturers with necessary raw materials or components on time to meet demand.
Together, channel partners, intermediaries, and suppliers are critical in delivering products and services efficiently, adding value for the customers and the manufacturers.