MARKETING
The distribution network is one of the key factors for companies to reach their customers effectively. This system includes all the channels through which products are distributed from manufacturers to end consumers. There are many types of these networks, each of which differs in its design and method of operation, allowing each company to choose the most appropriate for its needs. In this article, we will learn about the most prominent types.
Distribution network
It is the system that determines how products or services are transported and distributed from manufacturers or suppliers to consumers or end customers.
This network includes channels that include distributors, retailers, intermediaries, and logistics services that contribute to delivering the product to the market.
The goal of this network is to ensure that products are available in the right places and at the right time to meet customer needs, while improving efficiency and reducing costs in the distribution process.
The importance of distribution network in marketing
The importance of distribution network in marketing lies in several main points:
- Expanding access to customers: It allows companies to reach the largest number of customers through multiple channels, which enhances the spread of the product in the market.
- Enhance customer experience: Ensures product availability in locations preferred by customers, increasing customer satisfaction and loyalty.
- Reduce costs: By choosing the right channels, costs associated with storage and transportation can be reduced.
- Increase sales: A strong distribution network contributes to the constant availability of the product in multiple locations, which enhances sales opportunities and increases revenues.
- Adapt to market needs: By designing a flexible network, companies can adapt to changes in market demand quickly and effectively.
- Improve efficiency and time: Through an effective network, products can reach local and international markets faster, reducing waiting times and improving customer response.
The role of distribution network in supply chain
The distribution network has a vital impact on the efficiency of the supply chain. Here is the role that this network plays in the supply chain for businesses in Jordan:
Delivering products to customers
The primary role of this network in the supply chain is to ensure that products are transported from suppliers or manufacturers to end consumers through multiple channels.
Improve the efficiency of the logistics process
By coordinating well between different distribution points, this network contributes to improving efficiency and reducing logistics costs, such as transportation and storage costs.
Reducing waiting times
This network also ensures the speed of delivering products to the market, which enhances the company’s response to customer needs and improves the user experience.
More effective inventory management
The distribution network contributes to organizing inventory levels and distributing products to appropriate locations, which helps avoid shortages or surpluses in inventory.
Supporting flexible response to demand
The network in the supply chain allows adaptation to fluctuations in market demand, ensuring the availability of products at peak times or in diverse markets.
Enhancing competitiveness
By improving the speed and efficiency of distribution, companies can meet customer needs more quickly, giving them a competitive advantage in the market.
In general, the distribution network in the supply chain contributes to improving logistics operations, increasing efficiency, and reducing costs, which enhances the competitiveness of companies in the market.
6 Types of distribution networks
There are 6 main types of distribution networks used by companies in various industries, and each type is compatible with specific strategies according to business goals and market needs. Here are the most prominent of these types:
Intensive Distribution Network
This type relies on distributing products through the largest possible number of outlets in the market. The goal is to make the product available everywhere to increase sales and reach the largest number of customers.
Selective Distribution Network
In this type, companies choose a limited number of distributors or retailers to sell their products. This aims to provide better control over the quality of service and products.
Direct Distribution Network
In which companies distribute their products directly to customers without the need for intermediaries such as distributors or retailers.
This type is commonly used in e-commerce or companies that sell directly to consumers.
Exclusive Distribution Network
This type is used to distribute products through a very limited number of points, which enhances their exclusivity and increases their value in the market. It is often used with luxury or high-value products such as luxury cars.
Drop Shipping Network
This type of distribution does not require companies to store products. When a customer buys a product, the distributor or supplier ships it directly to the customer. It is widely used in e-commerce such as Amazon or Shopify.
Franchise Distribution Network
This type is based on granting companies the rights to use the brand or business model of other companies. In this model, franchisees distribute products and services using the parent company’s system.
Distribution network examples in Jordan
In Jordan, distribution networks vary based on the industrial sector and products. Here are some examples in Jordan:
- Coca-Cola Jordan: It uses an intensive distribution network through local distributors to provide its products throughout the Kingdom through supermarkets and small stores.
- Zain Jordan: It uses a direct distribution network through direct sales outlets, whether through its own stores or online to provide mobile phone and internet services.
- Al-Fakher Tobacco: It uses an exclusive distribution network to provide its products through selected agencies in Jordan, ensuring that they are exclusively available in some stores.
These networks contribute to ensuring that products reach Jordanian consumers efficiently and with high quality.
If you are looking for a leading company that provides high-quality distribution and marketing services in Jordan, Cross Jordan is the perfect choice for you.
It is one of the best companies in Jordan that has extensive experience in this field, and provides innovative solutions that help companies choose the best distribution and marketing strategies.
Whether you need an effective distribution network or a distinct marketing strategy, Cross Jordan has the experience and efficiency to meet your business needs, and ensure its success in the local market.
FAQs
What is a network distributor?
A network distributor is a company or individual responsible for delivering products from manufacturers to retailers or customers within a specific region.
How to make a distribution network?
To create a distribution network, identify target markets, select appropriate distribution channels, build relationships with partners (distributors, retailers), and ensure efficient logistics.
What is distribution network design?
Distribution network design involves planning and organizing the structure of a network to efficiently deliver products to consumers, optimizing routes, inventory storage, and transportation.
