Distributors add value to a supply chain between a supply stage and a customer stage if there are many small players at the customer stage,each requiring a small amount of the product at a time.

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Distributors add value by consolidating orders from multiple small customers, reducing transportation costs and increasing efficiency in the supply chain. This is particularly beneficial when there are many small players at the customer stage, each requiring a small amount of the product at a time.

Distributors Add Value to a Supply Chain Between a Supply