As an entrepreneur, you want a fast and effective method of getting your products to your customers – which is why outsourcing can be invaluable no matter what business you have. Choosing a distribution company is a vital step to take that if done incorrectly, could have a devastating impact on your export sales, brand and overall profit.

But if you’ve found a reliable and trustworthy distributor, they will be able to assist you by building a market for your products, fulfilling customers’ orders accurately and quickly and can provide a large amount of storage for your items prior to sale.

However, before you take the leap, there are several things that you should consider. To help you make the final decision, here are the four things that must look out for.

Their Reputation Within the Industry

Before settling on the distributor, ask others within the industry for referrals of good distributors. By researching into particular companies, you’ll get a better idea of their reputation and how efficient they are. From this, you’ll also uncover their experience and expertise at distributing similar products to what you sell.

During this step, you should also ask them the following questions:

• How well do you know the market and its future potential?
• What are the terms of your distribution agreement?
• How much do your services cost?
• What is the process if I wish to terminate the agreement?

Their Warehouse Capacity and Equipment

By attending meetings, trade shows and visiting the center itself, you’ll discover what their capacity is and the machinery they will use to distribute your products. During this stage, it’s worth comparing and contrasting different distribution centers, paying close attention to the various packaging methods that they use and the type of conveyors they utilize – e.g plastic chain conveyors.

If the conveyor and packaging process is low-quality, it could result in your products becoming damaged – resulting in loss of sales.

How Many Staff They Have

If you want your business to continue to grow, it’s essential that you look for a distributor with enough capacity and staff. With a small team of packagers, logistics personnel and general warehouse employees, you might find that they can’t handle the influx of orders coming through – causing a negative impact on customer loyalty and your reputation.

During the research stage, ask the distributor how many people will be working on distributing your product at one time and whether there is potential to increase this if necessary in the future.

The Location of Their Distribution Centers

Are they located locally to you? Or are they in another country? Often, entrepreneurs will hire manufacturers and distributors located across the world from them due to the low price.

And although this can be an effective business move, it could result in your products being poor quality. By looking at distributors far away from your target market, you might also find that they don’t cover the areas that you require.

When looking into distribution centers, consider the importance of having them nearby. If they are within easy reach, not only will you be able to visit them initially, but also regularly to see the process and whether anything in the chain needs to be altered.