Usually every single manufacturing company on the planet works through a system of distributors & subsequently the distributors indulge in trading with the smaller consumers.
This system protects the interests of the paper mills as they do not need to worry about getting the payments from multiple buyers & thereby reducing their risk proportion. Similarly, the no of overheads & staff will reduce thereby ensuring the stability of pricing by the mill.
A distributor is someone who is a carry and forward agent making a commission on the purchase and sale price. However, a distributor is not only a trader but also a source of important information which helps the paper consumers to understand the scenario better.
A distributor has a deep understanding of the product & application of that product. They supply samples which both the printer and his client can make the correct choice of either color, weight, texture, shade etc for their project.
Some distributors also offer converting, ruling & other services that help the buyer even more. Special sizes required by the printers/manufacturers can be supplied just in time.
Distributors have one of the most important capability – local inventory holding. No paper mill can hold as much inventory & as many sizes as required by the local markets in such low quantities. It will be a nightmare even in terms of inventory management. Therefore, this becomes one of the most important reasons why a paper mill needs distributors & why they become inevitable in the whole cyclical chain.
Another advantage of working with distributors is also their understanding of new products, innovations, creative ideas, printing techniques etc which helps the consumers.
Distributors traditionally have strong relationships with the with their supplier that can be leveraged to help customers when they run into complications with pricing or delivery.
Therefore a dealer/distributor/stockist becomes an extremely important part of the entire process chain & is inevitable for the betterment and growth of the trade.