What is a distributor and what functions does it have?

Distributor closing deal

One of the most important jobs out there today is, without a doubt, that of a distributor. It is the person who is in charge of carrying the products or to function as an intermediary between factories and companies that sell products. But do you really know what a distributor is?

Below you will not only find the concept of this, but we will also delve into what its functions are, the types of distributors that there are as well as other details that you should know.

what is a distributor

Distributor checking stock

A distributor is the person who mediates between a producer and a consumer, or between a producer and another company that is the one that puts the product on sale so that it reaches the consumer.

In other words, we could say that is that company, worker or self-employed that negotiates with companies to supply products that are then sent to other companies for them to use or market to consumers.

Let's take an example. Imagine a book publisher. It produces books, but needs them to be distributed to bookstores. So he hires the services of a distributor who is in charge of taking the books to the bookstores.

For this job, charge a percentage or a fixed. That is your profit.

Distributors usually work for local markets, shops, kiosks, supermarkets, pharmacies, online stores... Actually, they are very present on a day-to-day basis and without them practically no one could get supplies because their work is very important (carry the merchandise to the places where they are needed).

Types of distributors

truck delivering

Now that you know what a distributor is, it's time for you to learn about the different types that exist. And we can differentiate three large groups:

  • Food distributor. It is the best known, especially if you usually go to supermarkets and hypermarkets at the time they receive merchandise. Those professionals are the distributors. Its function is to put companies in the food sector in contact with customers, both final and intermediate. In this way, when the products arrive they are sold or consumed.
  • Technological distributor. It is the one in charge of distributing the technological resources so that the companies work.
  • Manufacturing Distributors. They are focused on raw materials, since they have to mediate between the source of that raw material and the companies that need it to make their products.

Of course, there are more classifications, but in this case they would already be a minority.

Functions of a distributor

Shipping of products

From everything we have told you, it is logical that you have already had an idea about what a distributor is, what it does, what types exist, etc. But in case you missed something, here we leave you what the main functions of this professional are.

Inform about products or services

The first function that a distributor has is to inform about his own service. He has to convince both company A and company B (the company that is going to trust him to distribute their products and the one that is going to receive them) that his work is going to be efficient and that he is not going to have any problems. Likewise, it must also be competitive in terms of price. Topics such as preparation of orders, invoices, promotions, incentives, etc. are part of this function.

Apart, You must also inform about the products that you can distribute. It must have a catalog to present it to the final companies so that they can see everything that it can provide them and know what they are going to sell, what the characteristics of that product and/or service are, etc.

Control the stock

Another important function for a distributor is to control the stock of the products. For example, imagine that you distribute plants. And there is a type that has now become fashionable and they ask for 100 copies. When he goes for them, it turns out that he doesn't have any. Not only will it affect his credibility, but it will make him look bad.

Por eso, it is important to keep track of the products that are sold, or that you can obtain, to always know how much you have to meet the demands of your customers.

Check the different orders

In this case, When a distributor receives an order, he has to make sure that the products he will supply are in good condition. and that also has the necessary stock to fulfill the order.

Otherwise, would have to cancel the order or propose alternatives to the buyer to see what can be done.

We are talking about an important topic that is related to the above.

Send the products in the agreed time

As well must be responsible for meeting deadlines, that is, to bring the merchandise to the client in a timely manner agreed with him in order to complete the order that has been made.

Also, in case of breakages, problems, returns, etc. You must also take charge of it and establish the policy towards the client..

How should a distributor be?

Being a distributor is not easy. You have to have people skills, that is, ability to communicate with people, empathize with them and get them to trust you.

But, in addition, it must have other characteristics such as:

  • Be neat and fast. Since you have to keep an exhaustive control of all the companies that you can feed on and all the companies that may be interested in what you distribute.
  • Solve problems. And there will be, you can be sure.
  • Perfectly organize products in warehouses (or have companies that can supply you with the products as soon as possible).
  • Good memory, to remember each of the agreements that you sign and you know your clients (on both sides).
  • have a good reputation. This is important because otherwise they wouldn't trust you to work with them.
  • Financial strength, in the sense of being able to deal with the expenses that may be generated before even collecting.
  • cover the market. In other words, satisfy the demand in any part of Spain or, if it is starting, in the part where it operates at that moment.
  • cover problems. In the sense of anticipating possible problems that may occur to the goods that must be distributed. This implies managing a "cushion" to face these expenses at a loss.

Now you know what a distributor is. Do you understand the importance of your work


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