With the demands of today’s just-in-time expectations and global markets the manufacturer—distributor relationship is wholly interdependent.  Without manufacturers, distributors would have nothing to sell - without distributors, manufacturers would struggle getting their products to customers.  The relationship between producer and wholesaler/distributor has existed since the agricultural revolution when farmers provided produce and blacksmiths made hardware.  They sold their products at the town grocer and agricultural implements & mechanics’ tools shops (today’s hardware stores) who then sold those products to consumers.

Today, significant advancements in technology and technical systems allows a product manufactured in Boise, Idaho to be automatically fulfilled at a distributor warehouse in Birmingham, England who delivers it to a customer in Newport, South Wales.   Theoretically, all in the same day – practically within one to three days.  And all this can occur with very little human interaction, yet with a tremendous amount of data sharing.  Even as recently as 10 to 20 years ago warehouse workers wasted considerable amounts of time traveling throughout the warehouse to move product and get it to the customer.  Yet improvements in flexibility and timeliness provided by evolving technologies reduces waste in the product distribution process as well as enhancing the customer experience through collection and sharing of data.

Distributed Manufacturing Gives Control to the Parent Organization & Helps Local Economies 

Localized manufacturers with their own designers, manufacturing engineers and labor force create an interconnected ecosystem that encourages development and growth of the local economy. This ultimately provides for Democratization of Technology  by becoming more accessible to the local economy and its supply chain. New technologies and improved user experiences empower organizations to more readily access and use technological advancements in products and services.

A Distributed Manufacturing Model: Flexibility, Higher Quality & More Cost Effective

Implementing distributed manufacturing allows a company to take advantage of local resources and become leaner and more adept in product development for the particular region’s needs and get product to market much faster.

Conventional Manufacturing & Distribution

For example, consider XYZ Company located in Pittsburgh, Pennsylvania who makes valves used primarily in the oil & gas market and conducts conventional manufacturing and distribution methods. They employ leading engineers in the design and development of fluid handling products. They perform final assembly of their products at the Pittsburgh headquarters, yet utilize subcontractors for parts and components located in the Asia. These subcontractors employ cheap labor to produce the valve components designed by engineers in Pittsburgh. The components are produced and then shipped to America where they are inspected and any out-of-spec product is rejected and returned. Without the control of localized manufacturing of all necessary components, the Pittsburgh valve manufacturer can incur more costs and slower lead times. This cuts into their mar

Advantages of Distributed Manufacturing

Historically manufacturers own and operate a dedicated factory and develop or leverage existing supply chains to meet the needs of their customers. Consider a manufacturer located in Cincinnati, Ohio. They are in an ideal location for logistical distribution throughout the Midwestern and perhaps Southern United States. They have dozens of their own dedicated distributors and operate through other independent distributors. Traditionally this model has helped them to be a strong player in a large geographic footprint, yet they find it difficult to be competitive in the Northeast or Western U.S., and prohibited from being competitive internationally.