A distributor should be financially strong enough depending upon the market potential as well as your product range. Finance is the most important criteria
Prior experience of the distributor in FMCG sector distribution will help him/her less time in understanding the functioning of various members of the channel, Less time to build a good rapport with retailers/institutions.
The infrastructure required like manpower, redistribution vehicle, godown space should be available of required quality and quantity.
Market reputation of the distributor in terms of the relationship with retailers will help in the efficiency of his work.
Distributor’s knowledge of the prevailing market conditions, retailers’ attitudes, competitors’ products etc. will help in getting the good hold on the market.
Use of various new technologies like SMS, computing, internet in various aspects of the distribution process will help in getting better efficiency in communication, operations etc.