Redistribution Management

• In the current scenario when the customer has become more demanding, updated & market also highly competitive & consumer-driven, it is essential to establish, manage and implement distribution systems & processes relatively in a more structured and efficient way to achieve and exceed business objectives.

• Effective redistribution depends on an efficient distributor/stockist who is appointed/assigned to redistribute goods to all existing suitable stores in the assigned geographic area as decided by the company.

• Necessarily, the efficient distributor should be financially strong, having sufficient infrastructure arrangements, management capacity & growth mindset too.

• For effective & efficient redistribution, outlet segmentation and beat mapping should be done considering the outlet's channel, type, business size, and geographic location.         If the company deals in multi categories business & feasibility is not an issue, the price list should be split into divisions/categories and beats should be designed according. Beat tagging & salesman working schedule should be designed on a permanent basis and assigned salesman should visit and work in the beat as per schedule day on biweekly/weekly/fortnightly basis as decided.       Moreover, a number of outlets in a particular beat should be appropriate.

• It is essential to train & educate salesforce to implement sales processes effectively. They should have updated knowledge of product portfolio all across. They should be familiar with the store's profile and understand their business & demands too.

•  Proper stock inventory management leads to effective redistribution.                    Many companies provide software access to distributors to automate stock inventory & order placement procedure. This is absolutely necessary to run and maintain a continuous replenishment system at the distributor point to ensure the availability of required stocks across the product portfolio to cater and service stores' demands.

•  Effective & efficient service levels affect redistribution positively, it is required to monitor and improve the distributor's services in trade...

1. Orders deliveries should be done timely.
2. Particular store's order should be billed wholly.
3. Credit facilities should be provided to stores as per requirements.
4. Damaged/expired stocks should be replaced timely.
5. All schemes & budgets should be passed and settled timely.

•  It is essential to run appropriate trade marketing plans at value-weighted stores across channels to counter competition, brand/category development & trade recommendations.

•  It is crucial to monitor & correct secondary sales phasing. Month targets should be split into weeks and further into a day-wise plan which should be rigorously monitored and get achieved at the salesman level.        Monitoring of bill productivity contributes significantly to improve secondary sales phasing.

• Cash & carry distribution channel which is owned & managed by Walmart, Metro, Lots, Udaan Etc adversely affects the redistribution process. They are doing parallel market working, servicing across A and B class stores and offering relatively lesser rates.                Therefore, necessarily certain actions have to be taken...

1. Channel plans should be run on all A/B class stores.
2. Cash & carry salesman does not sell loose cartoon, therefore there should be rigorous working on variant wise & pack Wise order booking.
3. A credit facility should be extended to all stores where payment is not an issue.
4. The order supply should be more prompt.
5. New and uncovered stores should be tagged in the beats and required additional infrastructure arrangements must be done.
6. The sales team should improve & upgrade the level of relationship with the trade.

• Distributor's investment optimization leads to more business turnover & rotations which contributes better return on investment  & business sustainability which is only possible through efficient supply chain management  & every day great execution management ( EDGE).

                          

Kindly publish your valuable comments.

Courtesy

PKGoel

 Sales Trainer

9319155888

Pkgoel_22@yahoo.co.in