Differentiate to Combat Disintermediation

Fear of disintermediation, or manufacturers bypassing distributors to sell directly to end customers, has grown in recent years, with increased adoption of e-commerce making such a move appear more feasible than in the past. As a result, distributors are faced with an increased need to prove their value to both manufacturers and customers or risk being viewed as simply an added cost in the chain.

This article examines the role distributors play in the supply chain and how they can approach the challenge of proving value to fight the threat of disintermediation, including results from MDMs survey on disintermediation, conducted in partnership with Grant Thornton.

This article includes:

  • How distributors add value to the supply chain
  • Areas with potential for differentiation
  • The importance of a transparent supply chain relationship

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  • Cost-Effective Channel Alignment
  • The Changing Role of the Distributor
  • The Changing Role of Sales Personnel

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