Historically, manufacturers did not have a financially viable way of getting products to customers so the role of a distributor was necessary. Distributors, or wholesalers, worked as the “middle man” between manufactures and customers – engaging with customers and maintaining inventory locally. With the digitalization of manufacturing and a shift to a more customer-centric business model, the distributor role is often no longer necessary. More and more manufacturers are employing a direct-to-customer model to sell products, which is lowering costs and improving customer and brand loyalty. This shift is opening up new purchasing options for customers and allowing them to reap the benefits of buying direct from manufacturers.
Advantages of Buying Direct
Purchasing raw materials and products directly from manufacturers provides several advantages to customers, several of which are highlighted below. It should be noted that if you are considering buying direct, make sure your manufacturer has experience and the right infrastructure and processes in place to deliver products directly at the necessary quality and within the desired timeframe. In order to reap the direct buying benefits below, you must partner with a manufacturer, like Amcor, that has the experience and expertise for direct purchases.
- Lower Costs: simply put, costs are inflated when distributors are part of the supply chain. These costs include expenses such as of infrastructure, personnel, transport equipment and storage facilities. Direct buying means the intermediary is not involved, completely eliminating the costs associated with this middle step. These costs savings are then shared between the customer and manufacturer – a win for both parties!
- Direct Line of Communication: when you buy direct you have a specific point of contact at the manufacturer that is accountable to you and is responsible for giving your account the attention it deserves. This direct line of communication provides many advantages. First, with fewer individuals involved it is safe to say there will be fewer miscommunications and confusion – additionally, there will be no one in the middle to potentially misinterpret the information being relayed between customer and manufacturer. Second, there will be fewer hurdles to receiving the latest information and guidance from the manufacturer. Last, but not least, buying direct allows the manufacturer and customer to build a long-term relationship which is advantageous to both parties.
- Improved Customer Service: the manufacturer has expertise in their product so when you buy direct you get to tap into this knowledge pool more easily. Direct access allows you to discuss with the manufacturer any questions you may have as well as more easily obtain recommendations on how to optimize product usage to maximize its benefits. Similarly, if you have concerns with the product or wish to discuss modifications, service matters are more easily addressed when a distributor is not in the middle as the manufacturer has full ownership of any issues. This arrangement also has benefits for the manufacturer as buying direct allows them to highlight their customer service offerings as a means of distinguishing them from the competition.
- Improved Transport and Quality Management: manufacturers give up some control and oversight of the product when a distributor is involved. The more individuals involved in handling the product, the more potential for quality issues and delays during transport. Lead times are often more reliable when buying direct which means customers receive the right products at the right time and in good condition.
- Ability to Purchase in Smaller Quantities: Yes, this is possible – smaller quantities are not just available from distributors! Many manufacturers only sell in large batches which does not make buying direct a viable option for some small or medium sized companies. However, not all manufacturers adhere to this model. Amcor, for example, sells in various volumes including small quantities, which makes direct purchasing from Amcor a viable solution for companies of all sizes!
Amcor: Manufacturer & Distributor
Amcor is a manufacturer of polyethylene film and bags, as well as polyolefin compounds, additives, blends, and masterbatches. Amcor has grown from a single product line to hundreds of products and five product divisions. In addition to selling products, we also provide tech support, assistance with your equipment, and process recommendations.
Amcor is also a full line distributor of various chemicals, resins, and gases for the plastic industry. With warehousing and distribution facilities across the United States, Mexico, Eastern Europe and China, we service companies of all sizes and locations across multiple industries.
Amcor realizes that quick turnaround, on time delivery, a quality product, and personal service are what it is all about. Contact us today to learn how we can assist with your next purchase!