A distribution channel is a network of individuals or companies involved in the process of delivering a product or service to the end customer. It is also known as a marketing distribution channel and it mainly comprise of distributors, wholesalers, and retailers.
Direct v/s indirect distribution
There are two primary distribution channels, direct and indirect. It includes various categories of sub channels too. In a direct channel, the vendor directly sells a product or service to the customers. While in indirect channels, the sale to customer involves intermediaries like distributors, merchants, wholesaler, etc.
Current distribution system
Presently, the way products reach to market or get delivered in India are neither organized nor standardized. But getting products to customers faster and more cost effectively than competitors is the key to growth. Thus, our country critically needs to update its distribution model to keep up with the upcoming competitive and connected markets.
The distribution cost in India shoots high up to 18 to 25% of the sales as compared to distribution cost in the developed nations. This increases pressure on margins and channel partners. Thus, it results in rethinking the process of distribution of India.
Win-Win Distribution model
Every partner in distribution channel; manufacturer, distributor, wholesaler or retailer expects higher business growth and expansion. But many hesitate to make a shift from the traditional distribution model to the modern one due to lack of technical knowledge and fear of adapting a new process. However, they need to understand it’s time to put the worries aside and look up to a comprehensive solution that works for Indian markets with unorganized penetration but in an organized manner.
Why Bnext Wholesale Distribution Software
Several distribution models have been evolving over the past decades. The last change involves eliminating these channel partners to cut short the process. However, it fails in replacing the traditional distribution system. There has been no significant solution to tackle the problem of the c channel partners in the supply chain. Indian organizations lag behind in having an organized supply chain compared to other developed countries in the world.
Thus, the distribution system requires a comprehensive solution that helps balance all the trade-offs such as distribution cost, organized supply, better product penetration, and increased sales.
For those who understand the need for distribution system, India’s top b2b wholesale software is a significant tool that adds value to all the channel partners and drive business growth.
Bnext wholesale distribution software acts as a digital product repository for the entire supply chain by maintaining transparency and eliminating duplicity of products. It’s instant sell and re-sell feature greatly helps in reducing distribution cost as well as in keeping a track of the entire sales process. Thus, promoting quick and easy penetration of products and organizing the distribution process.
The wholesale distribution software for small business seamlessly connects the distribution channel partners from manufacturers to distributors, distributors to wholesalers, and wholesalers to retailers.
The key to growth
In developing and unorganized markets like India, Bnext acts a key to growth. As it helps channel partners to improve growth by connecting instantly and trade within their trusted network. Thus, do more business with the same customers and promote long-term growth.