Ask the Manufacturing Execution Systems (MES) Expert: Scheduling Assistance
 Asked on Jun 14 2005 10:35:11:000AM | Q | What is the role of distributors and retailers in Supply Chain Management and why arre they important in the supply chain of any industry?
Nafeesa Hashmi, Paksiatan |
| A | The short version of the answer is that without retailers and distributors, manufacturers would be hard-pressed to find ways to get products from their loading docks out to consumers' hands. Retailers and distributors represent the front line of customer interaction for many manufacturers. OEMs focus on assembling products -- that is their strength and competence. It is rare that companies can be both the product maker and also own the distribution channel. Dell Computer comes to mind, but you even find that they increasingly are using various consumer channels to sell their computers. Getting products off the manufacturer's loading dock and out into the market is a complex undertaking. Not all customers are alike, or are located in the same region, or buy product in the same fashion or even at the same price point. It's up to the channel to know this fragmented demand equation, and that is their focus. As such, it is critical for manufacturers to not only be aligned with the right channel partners, but that they are receiving constant feedback from these distributors and retailers. Further, it is also the role of retailers and distributors to initiate the reverse logistics process on behalf of the customer. In summary, retailers and distributors are closely connected to customer demand, which is essential input for the supply chain to perform effective closed-loop product lifecycle management. |
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