How to Monitor Product Distribution to Avoid Litigation


Many businesses do not have the capacity or resources to manage their company’s entire supply chain themselves. To combat this, many turn to outside help with product distribution.

However, to ensure your product quality, there are multiple precautions you can take. Here are three steps to follow to ensure that your product is held to a high standard, even in the hands of your distributor.

Understand the distribution process

It is important to talk to your distributor to fully understand what the process looks like and the journey that your products will take.

Not all distributors are a good match for every company, so taking the time early on will help you determine if the way a distributor works is the best fit for your business.

Taking this initiative will also allow for easy communication between yourself and the distributor in the long run. This relationship will be useful as the demand of your business changes and you need to change your distribution strategy.

Is there a portfolio match?

There are many different types of distributors out there, including intensive distributors, selective distributors, exclusive distributors, direct distributors, and indirect distributors.

While each type of distributor has a different method of getting products to the hands of the consumer, many will often focus on specific types of products or industries.

Determining that there is a good match between your product and the portfolio of the distributor is a good method for ensuring that your product is cared for properly in this process.

Learn more about the different types of distributors to decide which is best for your company.

Local vs. International distribution

Selecting a local distributor or an international distributor is another piece of the puzzle to think about in monitoring your product distribution. Different countries have different laws and are held to different standards than your company may be held to.

By selecting a distributor overseas, it could be harder for you to communicate with your distributor, understand their processes, and have the assurance that your product is being processed properly. This risk should be evaluated and understood when selecting the right distributor.

How else can I avoid litigation?

Even with successful distribution, faulty products can still make it to market. In order to protect yourself now, it is essential to have products liability insurance in place.

But with so many insurance providers, it can be difficult to find the right one. That’s why we’ve simplified the process for you. By requesting a quote with us, we will provide you with up to 18 quotes from the leading product liability insurance vendors.

This will allow you to evaluate your options and makes the purchase process as simple as it can be.

Recent Posts


Helpful Related Insurance Terms