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The tendence of MRO products distribution and management model

Issuing time:2019-03-16 11:29

Diversification of distribution channels


From a worldwide perspective, with the rise of ecommerce, the flattening of channel management, the diversification of contractual relationships and the professional development of distribution services, the traditional distribution model has undergone great changes. In the traditional distribution of industrial products, the relationship between capital flow, information flow and logistics transformation is no longer unified, and specialty is no longer the same. Logistics distribution service industry and professional market information business providers are rising. In the past, the single capital flow in the field of distribution has diversified. The role of participating in distribution service provision and profit distribution has gradually increased, that is, the members of distribution channels are diversified. The business model of midproduct distributors is also developing innovatively. From the past single product distribution, diversified changes such as license distribution, brand distribution, channel distribution, valueadded distribution and even virtual production have been broken down. Distribution links are not limited to play the role of product circulation and transmission, but derive from valueadded creation links.

At present, China's distribution channels for industrial products have changed from traditional threelevel procurement and vertical supply channels to diversified development of network channels, and this trend will be further sustainable development. If we distinguish the traditional direct channel from the indirect channel, the direct marketing methods such as employee direct marketing, B-B network direct marketing, telephone mark

eting, information mail and enterprise selfestablished distribution agencies and offices are constantly innovating and developing, and the indirect channels through intermediary distributors are also divided into wholesalers, agents, retailers and distributors. Businessmen, import and export traders in international trade, etc. The development and evolution of distribution channels are becoming more and more complex because of the intersection of various channels and different modes of operation, such as chain, franchise, etc. This is also the result of the law of market economy, all manufacturers and intermediaries are constantly innovating, seeking and tapping new channels. Therefore, the diversified development of distribution channels guided by market mechanism makes it one of the core issues for manufacturers and distributors to choose the distribution mode, because the effectiveness of the channel ultimately lies in the embodiment of the mode.

The Rise of Internet


With the rapid development and popularization of the Internet, the transmission capacity, speed and use of information have undergone revolutionary changes. It is possible for people to trade through computer and telecommunication network. A new era of trade based on network has come. Global online trade volume was only 2.3 billion US dollars in 1996 and reached about 43 billion US dollars in B2B transactions by 1999, which shows that its development speed is very fast.


Compared with the traditional trade mode, the network trade has the following obvious characteristics: (1) more "adequate" information, more opportunities for cooperation between enterprises and between enterprises and users; (2) the trend of virtualization of commodity trading is enhanced; (3) low-cost transactions; (4) fast transactions.


We can be sure that the network trade based on information technology will lead to revolutionary changes in traditional trade. Traditional enterprises engaged in industrial products distribution must face up to this change, change or expand the content of providing distribution services, improve the management of enterprises, and establish a new concept of distribution services - innovative use of new distribution mode. In the selection of specific distribution mode, it is necessary to establish an informationbased management platform and expand the distribution channels of ecommerce based on the Internet. It is faster, faster and cheaper to distribute products and gain competitive advantage in the distribution mode.


For channel middlemen, the continuous development of network technology means has made B-B's network direct selling an unprecedented impact on their living space. The reasons why enterprises adopt this way are as follows: (1) The cost of selling products by enterprises themselves is lower than that of selling products through intermediaries. For example, manufacturers tend to sell directly when their customers are concentrated in the region or there are customers with large purchases; on the contrary, channel middlemen may be considered for distribution. (2) For the sake of controlling the sales side of the enterprise, the production enterprise should take the initiative. Some manufacturers, without good channel intermediaries to form strategic partnerships, or because of the particularity of the product need to control the sales rights of enterprises, generally tend to adopt their own sales offices, direct sales of manufacturers. (3) There is no suitable middleman to provide services. For some industrial production enterprises, because of the remote area, the particularity of the industrial products produced, the need for tailormade products, or the special requirements of customers on the installation, use and operation of products, etc., the producers are unable to find suitable intermediaries to provide distribution services for them. Then such enterprises have to build their own direct marketing network. This new trend of turning to network marketing is undoubtedly a major challenge to the existing channel intermediaries.