DISTRIBUTION
DIRECT DISTRIBUTION
Direct distribution is understood as the manufacturer supplying and selling products directly to consumers without intermediaries or other authorized agents. This form of distribution is widely applied in many businesses and units, especially in the field of food, food, beverage or other industries.
ADVANTAGES OF DIRECT DISTRIBUTION
Direct selling can be difficult to manage on a large scale, but this model allows manufacturers to have a better connection with their consumers. By controlling all aspects of the distribution channel, the manufacturer can monitor and track how the goods reach the customer. Thereby increasing the ability to interact directly with customers, eliminating redundant and inefficient processes.
Direct distribution channels also help manufacturers understand the needs and tastes of customers. Work directly with customers when they have requests, complaints or desires with the products/services that the business is providing.
Direct distribution channel, helping manufacturers eliminate inefficient sales processes, add more services and customer satisfaction policies. This form of selling also helps businesses set better prices, providing better experiences for customers.
DISADVANTAGES OF DIRECT DISTRIBUTION
The direct distribution channel is organized and managed by the manufacturer itself. Direct channels are often more expensive due to the relatively high initial setup investment. With this form of distribution, the manufacturer must set up a warehouse system, logistics team, trucks and delivery staff. However, once these factors are fully invested, direct distribution channels can be less expensive than the indirect channels model.