What is the core characteristic of a Manufacturer-Direct Distribution system?

The core characteristic of a Manufacturer-Direct Distribution system is that products are bought directly from the manufacturer. This means that consumers or retailers obtain goods straight from the company that produces them, eliminating intermediaries such as wholesalers or third-party retailers. This direct relationship can lead to a number of benefits, including cost savings for consumers and increased profit margins for manufacturers.

In a Manufacturer-Direct Distribution system, manufacturers have more control over their pricing, branding, and customer engagement, allowing for a more streamlined supply chain. This system is particularly advantageous when companies want to foster direct relationships with their customers and ensure that they receive feedback directly from the end-user, which can enhance product development and customer service.

While other distribution methods may involve third parties or be limited to specific local markets, the defining feature of the Manufacturer-Direct Distribution model is its emphasis on the direct sale from the manufacturer to the consumer or retailer. This approach can also accommodate high volume transactions, countering the idea that it involves low volume or is restricted to local markets.