AOTC EP 28 - Is The Distributor Still Relevant In Today’s Supply Chain?
Update: 2021-06-09
Description
Supply chains are very complex entities. We saw what happened to supply chain infrastructure early in 2020 and, more recently, we’ve seen how supply chains have struggled to get up and running fast enough to meet surging demand.
Because there are so many moving parts in a chain, it’s worth questioning if every component is necessary at a time when raw material costs are spiking and cost control is more important than ever.
One of the moving parts that may come under scrutiny is that of the distributor. We’re living in an age where e-commerce has proven its worth and, if supply chain managers are looking for redundancy, perhaps the bricks and mortar distributor is expendable.
In this episode, we examine the relevance of distributors through the thoughts and comments of David Morley, Gerent’s V.P. of Manufacturing Practice and Mike Simon, partner in Gerent Digital and someone with an extensive background in logistics and supply chain processes.
Key Ideas
01:52 – Is the distributor redundant?
03:39 – The pros and cons of a direct to customer role for the manufacturer
07:08 – Where distributors really add value for the manufacturer and the customer
19:39 – Rather than eliminate them, manufacturers benefit enormously by supporting distributors
Because there are so many moving parts in a chain, it’s worth questioning if every component is necessary at a time when raw material costs are spiking and cost control is more important than ever.
One of the moving parts that may come under scrutiny is that of the distributor. We’re living in an age where e-commerce has proven its worth and, if supply chain managers are looking for redundancy, perhaps the bricks and mortar distributor is expendable.
In this episode, we examine the relevance of distributors through the thoughts and comments of David Morley, Gerent’s V.P. of Manufacturing Practice and Mike Simon, partner in Gerent Digital and someone with an extensive background in logistics and supply chain processes.
Key Ideas
01:52 – Is the distributor redundant?
03:39 – The pros and cons of a direct to customer role for the manufacturer
07:08 – Where distributors really add value for the manufacturer and the customer
19:39 – Rather than eliminate them, manufacturers benefit enormously by supporting distributors
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