In today’s fiercely competitive market economy, the problem of each enterprise is the desire to maintain and develop sustainably. The management of the distribution system of all kinds of distribution channels is the solution to the development problem of the Enterprise. In addition to developing distribution channels, business owners also invest in systematizing the operation process, so that products reach consumers at the lowest cost and highest profit. The control and measurement of distribution channels are the criteria for enterprises to realize the above needs.
Types of Distribution Channels
We can divide distribution channels into categories such as direct distribution channels and indirect distribution channels and multi-level distribution channels.
Direct distribution channel: this is a distribution channel in which the participants are only producers and consumers. The manufactured products will be distributed directly to consumers without going through middlemen.
Indirect distribution channels will be divided into two main distribution methods which are:
+ Traditional distribution channel: known as the product from the manufacturer through the distribution intermediary and finally to the consumer. And traditional distribution channels will be channels at markets, grocery stores, local retail points, etc.
+ Modern distribution channel: will also be the product from the manufacturer through the distribution intermediary and finally to the consumer. However, the modern channel will be supermarkets, convenience stores, etc., a place where all distributors and manufacturers gather into a unified block to support the delivery of products to consumers.
Multi-level distribution channel: is a distribution channel that acts as both a distribution intermediary and a consumer.
How To Control And Measure Effective Distribution Channels
Create trust for distributors
Provide documents about the Company on products, discounts, and potential customers of the company so that the Distributor (NPP) can understand the operating mechanism of the Enterprise, the Distributor will feel more confident and ready. more willing, this will boost the sales motivation of the distributor
Create close relationships with distributors, establish interest regimes, discuss with distributors about new products, and reward policies. Understanding their difficulties and concerns, thereby having reasonable supplier strategies.
Innovating trade discounting strategies, giving annual bonuses to potential distributors, creating competitive strategies among distributors to bring fairness between parties.
Monitor inventory at NPP
Applying support tools to control inventory is considered one of the most effective support tools. DMS software solution supports Enterprises in automating the import and export of inventory at distribution points. DMS software also helps businesses monitor the actual consumption in each market, suggest orders automatically, monitor the expiry date of goods, and support distributors not to run out of stock.
Support order quality control and delivery staff
To complete the distribution chain as well as the distributor, the Enterprise needs to control the quality and performance of the delivery staff. DMS software has recognized the challenge of Enterprises in managing delivery staff, so the features of DMS with the module to effectively manage delivery personnel through digital maps with the lowest cost and efficiency. tallest. Delivery routes of employees will be shown through the GPS system, managers will understand employee activities easily.
Manage orders quickly
Currently, with the development of technology, distributors do not need to wait for sales staff, they can place orders directly through the DMS system, management will easily approve and deliver goods.
On the other hand, the contract, debt and discount limit of each distributor will be integrated on the system and give a warning when the NPP fails to pay the debt on time or exceeds the allowed debt limit. From here, business owners will have appropriate development strategies.
Manage the budget and quality of the promotion:
Previously, statistics on promotional products or control of promotions at the point of sale was a difficult thing for manufacturing enterprises, because the updated data was not accurate, the data was sometimes lost and erroneous. Management does not know whether the products really reach consumers or not?
With those concerns, the promotion management feature of DMS software has met the needs of business owners. The application of the software will help businesses get a summary of the quantity and quality of promotions at each point of sale, measure the market and the tastes of customers.
Based on DMS software – distribution system management, business owners will understand the sales process of each distributor, understand the potential of each region, systematize the order delivery process.