Distribution in business is important whether it is the distribution of services or products. Distribution management is the art of creating a comprehensive and effective distribution strategy. It’s not just about knowing how to deliver a product, but also where to deliver it and when. For example, a company might have a great supply chain that gets products out quickly and effectively to its main warehouse, but if it doesn’t have any smaller warehouses closer to customers, it’ll be difficult for the company to get those products out quickly and effectively to them. A distribution manager has to be able to anticipate what products customers are going to need and where they’re going to want them delivered. If there are no alternate plans for delivery—such as a secondary warehouse—the distribution manager will have to be ready with solutions like offering discounts if customers want their order delivered by a certain date or using other companies’ services if necessary.
Distribution management, or distribution for short, is responsible for getting products from the factory to where they’re ultimately sold. It’s designed to ensure that products are delivered in a way that makes them easy to find and purchase by your consumers, with the idea being that increased sales will improve your bottom line. This can be achieved through several different processes and systems, including inventory management, transportation logistics, warehouse management, and many more. Distribution is an essential part of any business’s ability to grow and flourish, which makes it one of the most important aspects of running a successful company.
Identifying the best distribution channels
Identifying the best distribution channels for your product requires you to consider several things.
- First, you should think about who your target customers are—this will help you determine where your customers already spend their money, and whether or not it would be a good idea to try to get in on that market. For instance if you are starting out a bike washing center you should do a market research on finding out the probable number of customers and whether it would be better to target rental bikes or private bikes in an area. Check out this page for more info.
- Second, you should think about what each of the distribution channels will cost you—how much will you have to pay for them to stock your product? Will they charge extra for space or visibility? As this is something that can vary widely from business to business (and even from store to store within one big-box retailer), you must do some research into how much money different channels will cost you.
- Third, and most importantly, think about how quickly you need to grow—you don’t want to go into debt just because you want a big launch date, but at the same time, if there is a way that you can get your product in front of your potential customers sooner rather than later, it might be worth looking into.
Some of the things you need to do efficiently for achieving excellent distribution management include:
- Warehouse storage
- Channel management
- Inventory control
- Logistics management