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Once the first two variables, the product and the price discussed, we need to make further progress towards the ultimate goal of the internationalization of your company. We have to define the distribution plan of the company and products to work.
The geographical separation between buyers and sellers and the inability to locate the factory to the consumer, distribution or transportation make it necessary from the point of production to the point of use or consumption. And many times more than a means of transport (multimodal) needed to carry out this purpose.
The distribution channel is the circuit following products to the final consumer or recipient of our sale. The starting point of the distribution channel is the producer and the end point or destination is the consumer or our client. All persons or organizations that are between producer and end user are the intermediaries. A traditional supply chain running from:
Manufacturer → Wholesaler (buying large quantities to sell to other intermediaries) → Retailer → Consumer.
Today also selling through Internet is having great success, allowing even hold the provision of certain services, such as consulting, web design, distance education, eliminates intermediaries and reduces costs for the manufacturer and price consumer purchase.
However we must also consider intermediaries for their contacts, experience, specialization and size of operations, the company offers more than what she could get for itself and generally serve a number of important functions:
- Reduce the number of contacts it has to make the company to reach the customer.
- Facilitates buying consumers because it allows additional conditioning products and its concentration with other products to make shopping easier.
- They help manufacturers solve the problems arising from the regular production and irregularity of consumption, remain stored as part of inventories.
- Engaged in advertising and promotion. Wholesalers develop communication functions and sales to retailers. Retailers themselves or in collaboration with wholesalers and manufacturers, carry out promotional activities at the point of sale merchandising (personal selling, promotion, advertising, testing) and other services.
- Provide additional services: warranty, maintenance, removal of waste products …
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