Intermediaries play an important role in distribution of non-durable consumer goods. Various functions performed by intermediaries are -

a) Arrangement: The intermediary receives goods from various producers and then arrange them into homogenous groups based upon their characteristics.

b) Collection: The intermediary maintains stock of goods with him so as to fulfil the market demand.

c) Allocation and packing: The intermediary receives the goods in bulk quantity from the producers and then breaks it into smaller units and pack accordingly.

d) Variety: Intermediary maintains variety of good by procuring them from various sources and making them available at single place.

e) Promotion: The intermediary undertakes various promotional activities which help the manufacturers in increasing their sale.

f) Risk bearing: The intermediaries indemnify the producers against the risk of fluctuation in demand, price, spoilage and facilitate storage.