Authorized Distributors

Actor Type: Intermediary Breaks When: Inventory gluts/droughts Capital Intensity: Low–medium Cash Flow Stability: Moderate Economic Nature: Asset-light distribution Margin Driver: Volume & rebates Performs Best When: Stable demand Pricing Power: Limited Primary Function: Resell components Primary Risk Transfer Mechanism: Sale-or-return terms Primary Risks Held: Inventory risk Public / Private Mix: Mostly public Representative Firms: Arrow; Avnet Residual Risk After Transfer: Moderate Revenue Model: Resale margin Typical Margin Profile: Low Value Chain Segment: Midstream Who Ultimately Bears the Risk?: Shareholders