1.     Distribution

Objective of Distribution is to Distribute goods/ Services more effectively to Direct Users and Resellers it also Includes Bulk Breaking, Sorting, Bundling, Cross Selling and Last Mile Delivery in case of B2B Goods/ Services, Investing in Working Capital, Market Intelligence, Gap Covering in case of SME when Sales Person is unavailable, Representation of company, Brand Identity Imprinting, Knowledge Sharing with Final Users of Goods/ Services, Aggregator for Goods/ Services, Feedback Analytics and utmost importantly perfect delivery of goods to Point of Sale when they have to be there. This translates into following Points of Consideration:

1.       Cost effective Distribution Activity

2.       Appropriate Margins for Distributors

3.       Adequate Number of Distributors to cover all territories and market segment

4.       Risk Management by way of Competitive Arrangement of Distributors

5.       Performance Targets for Distributors

6.       Sales Support to Distributors

7.       Product Training of Distributors

8.       Optimized Packaging for Distribution

9.       Personal Network with Transporter for Effective Distribution

10.   Working Capital Investment by Distributor into Inventory and Manpower and other Distribution Assets

11.   Communication flow between CRM Department and Distributors

12.   Special Incentive Structure for Achieved Turnover

13.   Communication policy between Various Distributors

14.   Territorial Arrangements between Distributors

15.   Bootlegging Cost Sharing arrangement with Distributors

16.   Selection Criteria for Distributors

17.   Last Mile Dealer Network Development Policy

18.   Distributors Participation in Branding Activities

19.   Post-sale Warranty Cost and Revenue Sharing Method for Distributors

20.   Market Information Sharing with Distributors

21.   Allied Product Push Strategy for Distributors

22.   Risk Sharing for Goods in Transit

23.   Warehousing and Inventory Management Support Provided to Distributors

24.   ** Use of Distribution Requirement Planning with use of ERP for Ease of Following

a.       Order processing

b.      Warehousing and storage

c.       Finished goods management

d.      Material handling and packaging

e.      Shipping

f.        Transportation

 

Often Distributors are seen as external stake holder in Company, but we have to understand their role as Working Capital Investors, Distribution Function Partners and Support to Sales and Marketing along with Branding. Another important aspect of Dealers Distributors is they are the people who risk their personal goodwill for growth of company for some financial consideration, Networking with them on personal level is utmost important as they act not only as agent of company but build perception about company in market on various business level that paid employees will hardly will make efforts for, and not only they risk personal goodwill but align their business in line with capacity of company for business purpose, their training and goodwill with company is very crucial. Thus ABC3M put thrust in fact that they shall become part of CRM by way of Technological integration where they can have real time information about movement of goods and updates in product line along with technological changes and functional Value Analysis of offered products/ services. Same time Checks and Balances of Credit Policies and Business Cycle Management has to be in place to increase focus of performance and return on investment by way of increased and effective movement of goods and services.