Differentiation of Distribution - a Challenge for Manufacturers of Industrial Goods

Book chapter, 2015

Manufacturers of industrial goods are challenged by two things. First they have to reduce distribution costs, second they need to improve distribution performance. To manage that, manufacturers need to develop distribution arrangements that are more customer orientated than today’s solutions. They must be differentiated because the requirements from customers differ. Developments in information technology and transportation systems provide manufacturers with tools for such a differentiation. The three most important dimensions of this restructuring are: activity specialization, more collaborative producer- distributor relationships and the need for considering distribution in network terms rather than as channels.