Distribution Companies are companies that purchase products and/or services, from one or more suppliers, and then resell them to their customers. If they resell the products and/or services to businesses, who in turn resell them to the ultimate consumer, they are commonly referred to as "wholesale distributors". If they resell the products or services to the ultimate consumer, they are normally just referred to as "distributors". In a few industries other terminology may be used such as "value added resellers".
Distributors, who maintain inventories of the products they sell, can also be referred to as "stocking distributors". Many times distributors will "drop ship" products directly to their customers from their suppliers. When distributors manage significant inventories of products, these inventories are usually managed in warehouses.
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