All companies distribute, use channels to reach the final consumer in the most efficient way. Distribution channels (also called marketing channels) are vital for the operation of the industry. A good distribution channel not only helps that the used resources are only the indispensable ones, but also supports communication and the consumer’s purchasing process and, with a strategy well oriented to distribution, you can perform great achievements. A clear example are the Coca-Cola distribution channels. In Mexico, we can travel to any town, go to a local store and find a cold bottle of Coke.
Distribution channels empower manufacturers to discover new ways of doing business, meet new contacts and deliver products in a much more specialized way to the final consumer, I mean, distribution helps the company to know the market, but even more important, allows you to know your target.
In the distribution, both wholesalers and retailers are used to reach the end customer, however, choosing a good distribution channel becomes a dangerous game when factors such as competition, costs, merchandising strategies intervene and is too much related with the price strategies.
Why are channels important for manufacturing?
Today, more than ever, technological change is marking a milestone between us. The immediacy is necessary for everyday life to follow its flow, and companies must take charge of satisfying their customers in the shortest time possible, however, there are also other companies that require others to carry out their processes. These intermediaries can form a large production network that benefits all the participants, and thus, reach all kinds of final consumers related to each other.
Companies must adapt and choose to reduce their costs by using intermediaries to complete their processes or distribute their product quickly. Its mission is now to renew its value chain for efficiency and effectiveness, use the vertical integration to create economies of scale (produce more at lower cost), and create a network of contacts to easily access new processes and new markets with unexplored niches.
On one hand, retail dies slowly while e-commerce takes possession of the market. Social networks and web pages are also distribution channels that provide a personal and close form of communication with customer. On the other hand, a point of sale is not necessary for the purchase of a client, and the fixed costs are really scarce . In these technological points, the mass production also has an area of opportunity to obtain specific clients and contacts, following with the parameter of immediacy of the 21st century.
Treitus seeks to be more than just a distribution channel or a channel for outsourcing. It wants to create a network of manufacturers that want to integrate into a new form of production. Treitus seeks to create a community within the reach of any company.
Soñador y constructor de mundos.