by
Amrut Desai , former Managing Director & Country Manager India & SriLanka , Hohenstein India Pvt Ltd-fully owned by Hohenstein Institute GmbH Germany
IF you are a successful distribution manager, what equations would you use to distribute goods to the right places to sell?1.As a successful distribution manager, one should utilize the following equations as they exist in
SALES CHANNEL : this motivates buyers, shares information between company and its consumers, negotiates fair bargains for consumers, and finances the transactions
DELIVERY CHANNEL: meant for physical part of the distribution.
SERVICE CHANNEL : that performs after sales service2.A distribution Manager must establish excellent working equations with channel Members as listed below
• Company’s own Sales team
• Carrying and forwarding agents
• Carrying and Selling agents
• Distributors, dealers, stockists, and value added re-sellers
• Agents and brokers
• Franchisees
• Electronic channels
• Wholesalers
• Retailers3. A successful distribution manager also adheres to the channel strategy as envisaged in the corporate strategy and marketing strategy. He will further ensure that there is a distribution strategy is in place so that proper equations are created for cost effective distribution. While designing distribution strategy he must :
• Define customer service levels
• Define distribution objectives and steps
• Put in place a structure of network required
• Define policies and procedures to be followed
• Define KPIs
• State critical success factors4.Additional Information
It’s the Personnel involved in distribution and the infrastructure employed for distribution that determine a company’s level of success. While infrastructure can be created, it is the human element that needs to be paid extra attention to for creating a successful distribution mechanism. In order to overcome the unique challenges of managing remote workplaces (like message degradation due to language barriers, time zones, cultural differences, modes of technology, etc.) a successful distribution manager must focus on the following four aspects :
Connection: the bonds we build with employees.
Alignment: keeping employees focused and moving in the right direction.
Accountability: how we get people to accomplish what we want.
Communication: via all mediums.
Of course, putting the right personalities in remote jobs is important. A successful distribution manager would actually want extroverted folks in the job; people who naturally connect and build ties that overcome the isolation of the remote location. Employees who will reach out and tell you when things start to go wrong are an asset for achieving excellence in distribution.
For establishing well-oiled and top functioning distribution channels, a successful distribution manager must have the following traits
Characteristic #1: Indefatigable: Managing distribution channel employees that span time zones can mean11 PM conference calls and6 AM coaching sessions. If yours is a9-to-5 mindset, and your energy flags after a “normal day”, learn to adapt to a more flexible schedule where you include breaks between “sprints” so your performance over long periods is more consistent.
Characteristic #2: Company Evangelist: It takes a highly pro-company kind of person to transmit culture across thousands of miles (and technology challenges) to wherever remote distribution channel employees are. If you’re only lukewarm on your company culture, it’s time to amp things up.
Characteristic #3: Encouraging: Negative and defeatist attitudes get amplified across emails, teleconferences and videoconferences. Set a positive precedent by welcoming challenges as exciting new opportunities; a chance to achieve something cool, interesting and innovative.
Characteristic #4: Approachable: Without face-to-face time with distribution channel personnel, it’s easy to miss the observable signs of problems ahead. Keep distribution channel employees feeling comfortable coming to you with their challenges by asking direct questions like: “What’s getting in your way” “What roadblocks are you facing right now?” “What’s stopping you?” “What’s holding you back?” and “What’s frustrating you?”
Characteristic #5: Constructive: Keep communication open by providing feedback that eliminates blame and focuses on solutions. Turn positive reinforcement into teaching moments by giving specific examples. “I like the way you got that report done ahead of schedule and the extra data analyses were really creative” instead of the ubiquitous “Great job” tells employees what was specifically helpful so they can do it again next time.
Characteristic #6: Leadership3.0: Meet communication challenges by increasing the frequency of communications. Keep your words authentic and encourage more two-way dialogue where distribution channel employees offer their input insights and opinions.
well the best equations can be conducted through market research, that will match your products to the best market segment, according to results you can implement distribution equations that use your resources effectively and efficiently minimizing costs and maintaining quality services.
Distribution business profitability and sustainability depends on products moving quickly and efficiently to the selling points (retailers). I think below are few strategic points that distribution businesses / managers ought to think about:1) Identify and use best possible distribution channels;2) Warehouse locations – to be cost effective and in the areas where land is not too expensive. A distribution warehouse does not necessarily be located in a downtown shopping area. The core issue is to serve the business partners/retailers;3) Use best practices for procurement;4) Speedy consignment processing;5) Efficient transport management.
It depends on the following factors;
· Market needs and preferences· The cost of channel service provision· Incentives for channel members and methods of payment· The size of the end market to be served· Product characteristics required, complexity of product, price, perishability, packaging· Middlemen characteristics - whether they will push products or be passive· Market and channel concentration and organisation· Appropriate contractual agreements· Degree of control.