A strong distribution network can escalate your company’s sales. A well-functioning distribution channel is more like a conveyor belt; you manufacture the product and place it at one end, and it reaches the other end in no time. When setting up a distribution network, you ought to meet the distributors and dealers and agree on some terms. Here are some tips on designing a high performing distribution system.
Keep Track of Channel Dealers
By tracking your distribution dealers, it will be easy to note the areas that require improvement, expansion or abandonment. If you choose to abandon an area, make sure you open another distribution channel elsewhere so that you can grow your network. It will also help to mitigate losses such as those incurred through truck accidents.
Pay Attention to Local Markets
If your product sells very well such that you do not have to market the product, do not relax and assume all is well. A product doing well does not necessarily imply that everybody is buying. It could be that the population density of the target market is high. Therefore, consider undertaking data mining in the name of promotional surveys. By doing this, you might discover the untapped market that you can embrace.
Switch Channel Teams if Necessary
Note the performance of channel leaders in every area. It is possible for all of them to have techniques they prefer using. In case they are not doing well, making them change their tactics might not work well. Instead, exchange the leaders so that each of them is in the region where their tactics are required.
Too much inventory is a toxic cost. Take the time to put together lean initiatives at storage and shipping centers to keep costs down. Always keep track of your sales in various regions. This way, you will be able to notice a decline in any area. With the history of the distribution channel at hand, it is easy to remedy the situation. The company can use past data to decide on which methods to abandon and which methods to continue using.
Focus on Geographical Segmentation
When sales decrease, take note of your marketing history once more. Look out for what has been done and what hasn’t been done. In case your marketing efforts match those of your distribution networks, then probably external factors like low population density or cyclical economic trends have a hand in it. To boost your sales in that area, consider the distribution strategies in strong markets and see the ones you can implement in this field.
If you want to increase your sales, you ought to do two things. The first one is to reach out to your clients. The other is to provide a product that meets your target market’s needs. Having a strong distribution channel will help you achieve the first objective.