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Manufacturer VS Distribution Network

Consider the difference between a Sales Distribution Network and a Manufacturing Distribution System. While a manufacture will invest capital to build a distribution system to feature and emphasize their products, a Sales Distributor Network is solely an association of salespeople with no leadership, no motivation or no ability to invest capital.

A Sales Distribution Network is an association of confederates. Each salesman is "on his own". These salesmen would not invest significant capital. They have no centralized management and no profit and loss accountability to stockholders. These salesmen merely sell products which are associated to an established target group of buyers. These salesmen work strictly for themselves.

The Manufacture's Distribution Network competes with a Sales Distribution Network. The Manufacture Distribution Network may have 80- 160 networks in the U.S. and tend to be a vertical distribution system. The Sales Distribution Network is more horizontal and may have 300-500 smaller competing networks. The manufacturer will invest capital and has a decision making core. The manufacture has an obligation to fill his vertical distribution pipeline with new innovative products. That is the key difference.