Challenges of modern distribution

The reality now is that the world has become a smaller – but so much more complicated – place. A chemical manufacturer now needs distributors to offer more than a middleman service. Customers not only want the right price but quality of supply. This means a consistent supply with no disruptions, just-in-time deliveries, security, legality and, of course, quality of product. To survive, the distributor has had to evolve. This article reflects some of the key changes that have been seen to affect the business in the industrial, cosmetic, food, nutritional and pharmaceutical sectors.

Quality challenges

The distributor/manufacturer relationship is vital to the quality of supply. Working together to provide the best service possible for the customer is essential. The distributor must act as a quality buffer for the customer, understand the supply chain and manufacture of the product and assess potential issues. He must be sure that he can form a good working relationship with the manufacturer and that the manufacturer will be flexible enough to meet the needs of the end customer. As manufacturers outside Europe will often work to different standards and legislation, a European distributor needs to be careful to work only with companies that can meet the high standards that EU customers expect, communicating customers’ needs clearly to the manufacturer. It is also necessary to implement a robust audit system to highlight business risk and prioritise auditing of suppliers, putting in controls to protect its customers. Cornelius’ China office has developed a network of reliable high quality Chinese suppliers. For example, the office has QC tested several batches of food grade material from its Chinese suppliers to the appropriate specification in independent labs to ensure the conformity of the ingredient to the standard declared. We strongly believe that low prices without convincing quality management systems or safe production facilities can in no way justify the corporate risk.