The roles of the distributor and the manufacturer are totally different. However, they are part of the main supply chain and they work in the chain work. Furthermore, here need to clearly understand the difference between the Distributor vs Manufacturer. Therefore, the best you plan for both areas the best you run and boost your business at the different platforms. In addition, for a clear understanding of both areas you need to work in a smart way which is quite ideal and best. On another hand, the best you are moving in the ground more you can plan the best ideas in both areas.
Following are the main and major key differences.
Table of Contents
Function And Role
With manufacturing companies make products and things according to the market and customer need. Moreover, they are totally responsible for product creation and its onward success or failure. On another hand, they need to arrange all the raw materials, labor, and other essential things to make products in the production line. However, they are working in the main domain of the supply chain from where one line begins with the new production of goods.
Distribution is based on bulk buying from the makers or wholesalers. Therefore, they are making margins after selling to the end-user or the chain retailers. However, they mostly work as the middle agent and play with their own investment. Moreover, from makers’ product production, success, and failure are not their issues. Moreover, this is also connected to the main chain of the supply and many manufacturers use them for product supply.
Goods Owner Ship
Manufacturers move with their own product line and they are the owner of it. Therefore, here we can say that the smarter you understand it all their production and raw material belongs to them. In other words, they are the top player in the supply game and have big inventories in their warehouses with full ownership.
Distributors mostly play with their investments and arrange inventory and products from different makers. However, they are the owner of their products but on a small scale from the different makers according to customer needs. Therefore, here we can say that both are different from each other and part of the same chain.
Inventory Handling And Types
Manufacturers carry raw materials, semi-finish, and finish inventory and goods. However, they have a big place for the inventory areas for everything. Moreover, they need to take and handle all the inventory matters with the process in a separate mode.
Distributors only need to maintain their own inventory which comes from the different makers. Therefore, here we can say that they don’t have big pool and inventory handling issues. In addition, their working and handling mostly remain straight and easy.
Pricing Difference
Manufacturers make the wholesale price for the wholesalers and the retailers. However, they can offer better prices on bulk buying. Therefore, here we can say that they have complete control over the price.
Distributors get discounted prices from the makers and they are totally dependent on the makers. However, they have limited margins and they can’t offer anything extra to their customers. Moreover, they need to play in the margins and need to handle the cost as well.
Area Of Focus
Manufacturers mostly focus on retailers, Wholesalers, and distributors. Moreover, most of the time in terms of imports they are also connected to direct customers. Therefore, they are not connected to single customer care.
Distributors are mainly connected to the retailers and the end users. However, they need to handle the after-sales matters and product base warranty issues. In other words, they have quite different working as compared to the makers.The role of the business is to carry on the work and make a profit. However, in that it is essential to understand the difference between Distributor vs Manufacturer. Therefore, here we can say that the more you are clearly understanding it the more perfectly you can use it. On another hand, for big businesses clear understanding is the most basic thing, and compromise over it is not possible. In other words, with the above study here we can say that both are totally different things and there is no match. However, the ground reality is that the better you click the differences the better you can use your buying process.
