MSME & Large Organisations Connection – Intermediaries

Organisations in their bid to grow, opt for the most economical of distribution channels to reach their end consumer. In this process, many distribution models come into play. The compensation for which is based on the role and efforts made by the distributor to promote and sell the organisations products and services. Intermediaries are those who support in making the goods and services available to the ‘End Customer’ ie the individual who will use the product/service and consume it (thereby the word Consumer). A customer may not necessarily mean consumer. The Key for any Organisation is ‘Consumption’ of its products / services. Consumption in economic terms is ‘destruction of the product / service properties’ for own use or for creation of value addition.

Why would Customers and Organisations accept an Intermediary? Intermediaries help to reduce distribution and logistics costs and are in a way the link to a complex Manufacturer – Consumer. A significant chunk of the MSME businesses are involved in this chain of Manufacturer to Consumer process. The Customer Experience in this journey is what creates brands and loyalty – therefore MSMEs play a key role in maintaining the same level of commitment and Customer Service as would have been done by the Manufacturer / brand owner. This focus on the entire chain by the Principal (owner of the brand / product / service) and the Deliverer to customer is what calls for world class organisation.

The Strength of a Chain is that of its Weakest Link

To know more about these distribution models and learn how as a larger organisation or as an MSME you can maximise business, revenues, profits as well as manage and grow the brand contact@nat-cons.com