Tumblelog by Soup.io
Newer posts are loading.
You are at the newest post.
Click here to check if anything new just came in.

October 17 2012


The Benefits of Supply Chain Management Systems for Your Business

Nowadays, you can perform product distribution in so many methods. Retail distributors, brokers, private labels, and supply chain management systems are some of the ways to produce and distribute your goods. Read on to know more about different ways to let customers buy your product.

Direct Selling

Direct sales indicate that sales are handled by the company's own sales force. You may hire people to directly talk to potential customers and offer your products and services. Whoever is working to get your product sold is entitled a percentage commission for the work.


Brokers are independent from the company they serve and receive a commission. They have a narrow range of products that usually compete with each other. They usually choose to sell the product they think is best for the customer. Sometimes, they sell all items they have to the same person in an interval of two weeks.

Private Label

Private label is a practice where you sell your manufactured products to another company. That company earns the rights to change its brand name and consider it as their own manufactured goods.

Specialty Retail Distributors

Specialty retail distributors serve small specific markets. These distributors take many products from one manufacturer and promote them as product offerings. They are a key component in most investor companies' distribution plan. They normally raise the price up by 35 to 40% before selling to retailers.

Industrial Distributors

Industrial distributors sell directly to industrial companies rather than retail stores. These types of distributors sell a wide range of products to companies. Some industrial distributors only focus on one type of product such as safety equipment or kitchen utensils. These companies have a high level of technical support to help choose the right products.

Trade Distributors

Trade distributors deal with tradesmen with specific needs. They sell to different trades depending on their needs. Wood products distributor sell to contractors, while auto part distributors sell to car repair shops.


Wholesalers get supplies from manufacturers and sell them to customers. They don�t provide promotion and services for the products, as they simply put it in the stores for people to buy. They buy big stocks of products and serve markets like grocery stores. They mark the product up by only 15 to 20%.

Supply Chain Management Systems

These systems help in the operation of interconnected businesses that provide products and services to the customers. It is beneficial in planning, designing, implementing, and monitoring the related activities to improve the performance of the business. It helps lower the costs of raw materials. You can have the chance to cut costs through a volume discount with suppliers. With the latest software, you can track your suppliers and distributors. These reports allow you to see the areas needing improvement.

Don't be the product, buy the product!