The ultimate interest of manufacturers is to bring their production to the market and most manufacturers would be involved in the process as intermediaries. Manufacturers are responsible for creating a distribution path, a distribution chain or a distribution channel to get the product out of the factory, onto the physical location, put the price tag on it and on the shelf, and wait for the customer to reach for it. Intermediaries form the links in those chains, in the form of companies or individuals who don the roles of wholesalers, retailers, brokers, etc. that ultimately push the product closer to the customer, at their individual prices and added values.

 

 

 

 

 

The distribution service channels not only affect the price but also have an influence on other marketing decisions. A product can come to acquire a unique position in the market, simply on the basis of a distribution decision. Interestingly enough, the same brand may use different distribution channels based on pricing. For example, while mid-range products are shipped to mass merchandisers, high-end products will only be offered to specialized stores through distributors. Distribution channels are targeted at limiting the number of the transactions goods have to undergo before reaching their final destination. Wholesalers and retailers order large quantities of products from the manufacturer and then sell single products to end customers. 

 

Distribution companies in Dubai

 

 

The distribution companies in UAE are primarily concerned with high efficiency, not only in terms of transportation and storage but even otherwise. These are to be used at maximum capacity at minimum cost. The goods are moved from one location to another to finally stores, by wholesalers and retailers until there’s a demand for the product. Intermediaries offer more added value on the product, by facilitating returns, and lending customer support, etc. A common added value for all distribution channels is they all have shared risks with the manufacturers, which explains why the latter have vested interest to sell in bulk, while retailers have a vested interest in carefully assessing if a particular product will be sold. 

 

 

The distribution companies in Dubai are responsible for creating a two-sided connection from the manufacturer to the customer. However, what comes to the forefront is, getting the product from the factory to the customer basket. The level of the distribution channel depends on the amount and role of distribution channel members. If the manufacturer uses a distributor to access the customer, it is termed as a one-level channel. On the other hand, if the distributor sells to a retailer, it is referred to as a two-level distribution channel.