|
Distribution is an integral part of marketing your finished product and making it
available for use by the end consumer. Properly managed distribution process also
provides a significant opportunity to drive time and cost out of every element of
the supply network. Success in your distribution process lies in moving from solely
customer service orientation to the operational excellence of your organization.
The objective of our consulting team is to help you develop a strategic vision for
your company focusing on increased growth and margins by improving your distribution
process. Here are some of the many areas we focus on:
Distribution Channels. It is important to know what your distribution
channels are: you can own your distribution channel; you can sell directly to end-user;
or you might employ services of a professional distributor who moves your product
from manufacturer to market. Alternatively, you can utilize services of wholesale
distribution firm, which sells your products, for example, furniture or kitchen
cabinets, to another commercial organization/retailer or another wholesaler, and
not directly to the end consumer. Whatever channel you use, our consulting team
can help you clarify and identify the best possible ways to distribute your product,
and come up with additional channels you might not have employed previously.
Advertising & Marketing. Often considered as yet another form
of a distribution channel, advertising and marketing need to be properly established
and regularly evaluated. Effective advertising generates increased consumption of
your products. Advertising does not need to be prohibitively expensive. Any medium
can be used for advertising: posters, billboards, e-mail distribution lists, web
banners, magazine newspapers, magazines, print advertising, online advertising,
etc. We will work with you to identify the proper and cost-effective advertising
channels for your distribution needs.
Order Driven Network. We will help you define what kind of network
you currently have or should have to move your order in the most efficient manner
from production to distribution: order driven network, consumption driven network
or manufacture-to-order network. Effective distribution requires a very flexible
and highly responsive supply chain.
Inventory Control. Distribution and inventory management are tightly
interconnected. Communication between the two is of paramount importance to reduce
inventory waste and inefficiencies in responding to customers. Whether you do your
own distribution or outsource it, turning your inventory (whether it is materials,
labor resources or a finished product) over quickly and managing your storage needs
are prerequisites to making money. With improved demand forecasting and manufacturing
flexibility, you will be able to decrease the amount of inventory (of materials
or finished product) and eliminate the non-value added variables that come with
utilizing certain distribution channels.
Overall Managing. It is important to monitor and control your distribution
channels, including advertising, whether you sell directly to end consumer or employ
a middle man. You also need to monitor “behind the scene” procedures, such as warehouse
setup and organization, shipping and receiving, labeling, bar-coding, specialized
packaging, minimum order quantity to obtain full truckloads, and so on.
Our consulting team approaches any project by 1) defining your existing problem,
2) doing the analysis in each of the distribution networks, 3) analyzing manufacturing
processes and customer replenishment processes. Then, our team defines precise and
meaningful measures that drive customer (distribution) and manufacturer and provides
you with the recommended implementation plan tailored to your specific company.
Creating an efficient and responsive distribution system will in the end pave the
way for waste elimination and value creation.
|