What role do Intermediaries play in the distribution process?

Intermediaries act as a link in the distribution process, but the roles they fill are broader than simply connecting the different channel partners. Wholesalers, often called “merchant wholesalers,” help move goods between producers and retailers. For example, McLane Company Inc. is among the largest wholesalers in the United States.

What are distributors & intermediaries?

Distributors and intermediaries in the distribution channel specialize and specialize only in particular stages of a marketing process, such as: production, marketing, and distribution. They assume their responsibilities voluntarily. Distributors sell goods to intermediaries or consumers under contract negotiated with manufacturers or retailers.

Why do producers use intermediaries?

Most producers use intermediaries to bring their products to the market and, in so doing, forge a distribution channel. Intermediaries make goods available to target markets more efficiently – through their contacts, experience, specialization, and scale of operation, they offer more than the firm can achieve on its own.