ChannelFusion New Channel Meets Old Challenges Distributors work in an atmosphere of low margins, high volumes and tight deadlines. These factors challenge them to push inventory through as many channels as possible. Distribution product managers rely on industry knowledge to gauge market demand. Their assessment determines the volume that can be distributed to resellers and retailers before the manufacturer revokes stock rotation privileges and the window of opportunity to send products back closes. Product distributors who specialize in technology are particularly challenged because the products they work with are frequently upgraded, decreasing demand for older models.
Wholesalers cite excess inventory disposal as a critical link in the supply chain.
Seventy percent were dissatisfied with their current means of inventory disposal. Some distribution associations support e-commerce as a method to enhance product flow and enable resource management systems. Despite the increased efficiency afforded by the automation of these processes, distributors still struggle to find effective online liquidation channels for excess inventory. Recently, distribution associations and auction sites have formed strategic relationships. Food Distributors International partnered with TradeOut to liquidate tractors, trailers and refrigerant equipment.