Distributor Selection Models in Rural Areas: An Approach to Inclusion and Sustainable Profitability

Abstract New economies have structural inefficiencies in their rural distribution systems due to infrastructural underdevelopment, retail networks, low digitalization, and socio-economic vulnerability. Traditional distributor selection model- mainly applied to urban scale of economies- does not consider the complexity of rural settings where inclusion and resilience are paramount factors on long-term sustainability. The given work suggests the complex system of distributor choice and management that will help to combine the socio-economic inclusion with the sustainable profitability in rural markets. Based on the theory of sustainable supply chain management, the literature of inclusive business models, and multi-criteria supplier appraisal models, the article constructs a systematic Rural Distributor Sustainability Index (RDSI). The model considers commercial performance outcomes, social sustainability outcomes, governance criteria, and digital readiness dimensions. It includes the principles of inclusive value chain development Hall and Matos, 2010), socially responsible distribution strategies and sustainability-oriented models of suppliers collaboration. The suggested framework takes the current distributor choice approaches a step further to infuse the mechanisms of community-level inclusions, profit sharing logic and adaptive governing mechanisms in distributor appraisals. It also combines the bottom-of-the-pyramid market creation theory and scalable rural sales agent models and is consistent with sustainability performance measurement strategies. The proposed study has theoretical value by filling the gap between distributor selection research and inclusive and sustainable supply chain governance and practical value in providing a replicable model to apply in the FMCG and agribusiness operations in Latin America and other similar emerging markets. The article provides a reconceptualization of the distributor choice as a strategic sustainability intervention, and not a transactional decision, and thus illustrates how companies can achieve a triple bottom line; that is, to penetrate the rural market, deepen the involvement of the local economy, and generate long-term profitability.