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What are importance of intermediaries in the chain of distribution?

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Importance of Intermediaries in the Chain of distribution.

  • Reduce the number of transactions between manufacturers and buyers.
  • They assist in breaking bulk.
  • They assist in storage of goods.
  • They assist in transportation of goods.
  • They assist in product promotion.
  • They assist in customs clearance.
  • They assist in accumulation of stock and hence stabilizing prices.
  • They assist in documentation in international trade.
  • They assist in debt collection on their principals behalf e.g. auctioneers.
  • They assist in establishing contracts between buyers and sellers e.g. brokers.
  • Assist in preparation of goods for sale e.g. packing, grading, branding, sorting, blending etc.
  • Assist in availing variety of goods to consumers.
  • Help in sharing risks involved in the process of distribution
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