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Distributor stocks considered as a part of sales or supply chain?

Who is controlling the stocks level at distributors should be a part related to the supply chain team or the sales team?!

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Question added by Mohamed samhan , Sr. Supply Chain Planner , Hitachi Rail STS
Date Posted: 2013/11/26
Ahamed Shareef
by Ahamed Shareef , Divisional Head - Quality Assurance , Apollo Tyres Ltd

Distributor stock is considered as sales in P&L! Not as a supply chain stock.

Muhammad Saleem Ud Din
by Muhammad Saleem Ud Din , Administrator , Hafsa National School System

Definitely Supply chain responsibility but keep in mind its always a team work that works for companies. If we tag one department alone for improving the sales and distribution then it is no going to make it through. Sales team must play their part as well.

Dick Chapman
by Dick Chapman , Area Asset Manager North East & Scotland , Northgate Vehicle Hire

Hello Mohamed,

This is the responsibility of the supply chain team who will plan in stock levels according to trends (including sales). If a minimum and maximum level are set, and the minimum level has been reached then this is a signal to order more.  The supply chain need to be aware of the speed of the distributor sales and must communicate effectively with the supply chain.

Rami Abdulla Ali Katee
by Rami Abdulla Ali Katee , Logistics Officer , ICRC International Committee of the Red Cross

In distribution compaies the stock level is supply chain's responsibilty which should be based on sales and marketing plans and othe factors.

Sameh Abou Agour
by Sameh Abou Agour , National Sales and Marketing Manager , ulker

In fact Distibutor stock consider as Sales responsibility. Distributor should have two targets In and Out and sales should follow it on daily basis to controll stock and have better management stocks. I respected all answers but they were talking from company point of view so they consider it as Supply chain.

Ani Kuriakose
by Ani Kuriakose , Managing Partner – SCM , A. A. Associates

It would depend on the individual firm and supply chain techniques used. In case of examples like consignment inventory or vendor managed inventory, the distributor stocks are still within the firm's inventory even if held at the distributors premises.

I have worked with firms in the Medical business who track the inventory until delivered to the end customer and also help the distributor to move their stocks. This provides clear visibility and also avoids dumping practice blocking up the supply chain.

But most firms consider distributor stocks as sale and do not bother until inventory piles up at the distributors end leading to slack in downstream demand. This has a danger of leading to a disconnect with market conditions and slowing down MIS information flow.

jeyanthi Murugesan
by jeyanthi Murugesan , Customer Service Executive-Logistics , CKA Ayezan Logistics LLC

Everywhere in the World, Logic is same.

Stocks Billed to  Distributor its teated as a  Primary sale, When distributor is selling to retailer its called secondary sales.

From Warehouse to Distributor the responsibility is supply chain, after delivered and get the sign in POD , resposibility is distributor its not a Supply chain . this is the FMCG industry rule everywhere in the world.

Without invoicing can we move goods from the warehouse? then after invoicing it should be a sale, if you do stock transfer to distributor it will not be sale.

BAIJUMONE RASA
by BAIJUMONE RASA , Planning and Material Control Manager , Aujan Coca cola Beverages Company

Sales cycle get completed only when we are paid off for product services offered. Simply product distributed is not treat as sales but it is part of supply chain accountability to monitor the movement of stock. For example short shlef life or slowmoving  stock reshuffling from low demand area to high demand area is a supply chain function. Effective supply chain is committed to mitigate impact to business due to redundancies and write off. So take care of distributor's stock too :) 

Deleted user
by Deleted user

Distributor stock is defenatly a sale. once the stock is out of the company is not a supply chain.

Akbar Bakhshmand
by Akbar Bakhshmand , Production / Business Analysis , Saipa Corp

Dear Mohamed

Sales & Supply chain are defined in different levels. the distribution stock is a part of supply chain. 

Ameya Pai Angle
by Ameya Pai Angle , Summer Intern (Purchase and Warehouse Management) , Indoco Remedies Ltd

Unfortunately its a sale. there can be buy back contract between company and distributor or return policies. but on papers its a sale.

it becomes burden for distributor to either sell or dispose stock such as spare parts of discarded products.Hence there is need of CPFR... collaborative planning, forecasting and replenishment in order to avoid inconvenience for all the stake holders.

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