Question By: The purpose of specialty chemical distributors has been emerging over the past several years, with major implications across the chemicals value chain. In the past, chemical manufacturers typically seen specialty distributors as a necessary evil—a means to reach small customers or those that are hard to serve economically.
Today, distributors are becoming an essential component of manufacturers’ channel strategies. The best distributors have broad market insights and the capability to create real value, both for manufacturers and customers.
No wonder the demand for specialty chemical distribution continues to grow faster than the overall industry.
Handle complexity. Distributors can handle sales to small or nonstrategic clients and those that need smaller order sizes. (Some chemical generation sites have logistics restrictions that prevent them from running small batches or processing small orders.)
Reach fresh customers. Distributors can also help manufacturers grow their business by growing the reach to customers that the manufacturer would not have been able to enter on its own.
Enter new markets. Distributors often have uncommon insights into a particular region. By working with a distributor, manufacturers can more comfortably access such a market, particularly if the manufacturer has no current trace there. The same holds for product and application segments in which the manufacturer doesn’t yet have an offering but wants to develop one.
A.G. Layne is well known for linking country’s lubricants, silicone fluids, solvents, and specialty chemical manufacturers to the companies who make the everyday products consumers buy across America. For more information visit: https://www.aglayne.com/