Key To Building a Distribution System for FMCG Business 

The competitive environment among enterprises is increasingly fierce, especially competition in the fast-moving consumer goods (FMCG) sector. Successfully building a brand with good products is just the first step in this race, as the essential task to bring the products to customers is to create a strong distribution channel to meet customers’ needs at any time. Thus, distribution channels are considered the “strongest” weapon of enterprises in this race. 

1. What is building a distribution system?

Building a distribution channel can be understood as creating a market segment based on geographic surveys and customer demand, the fastest and easiest way to reach your target audience. 

Effective distribution channels will help enterprises anticipate market demand, user tastes, and product quality. Revenues and profits will be maximized through distribution channels, contributing to building stable growth and increasing value for the company. 

2. Building a distribution channel strategy

The first strategy in building a distribution channel is conducting market research and analysis, identifying the factors that affect the distribution system, such as geographic limitations, market demand of customers, distribution of salesforce, etc. 

Secondly, it is necessary to define the goals and standards of the distribution system channel based on its standard procedures to achieve sales targets and the company’s development orientation. 

Thirdly, select the distributor’s strengths to meet general requirements that the company proposes, determine if the distributors can develop or not, and identify the needs for the workforce and material resources of the distributor. 

Fourthly, build a sales force at the distributors’ side; assist them in pushing the products onto the market. 

Fifthly, develop promotions, accumulated point programs, discounts, display support, POSM, etc., to promote the distributors. 

Sixthly, assist the distributor with a technology solution, control the distributor’s performance, and regularly assess their performance after coming into operation. 

3. Effective Management of Distribution System Channel

Effectively manage the company’s distribution channels from traditional to modern ones, build and manage the company’s sales team as it is a significant force of the company to sell or distribute the products. 

Distribution system management is also an integrated process from production to sales and distribution. Control the operation of distribution channels to ensure that the company’s strategy is correct. In the current era of technology, the application of software to management to optimize and increase work efficiency is a trend that many enterprises are interested in. Applying technology to the distribution channel management process makes management more accessible and efficient. 

Applying the eSales DMS Solution – Distribution management system to administration helps enterprises have the optimal automation and workflows that save time and personnel resources for operation and cover more customers instead of recruiting more people. Huge expenses in distribution for promotion, display, sales programs, and POSM… are strictly controlled on the system to help businesses resolve negative issues, budget losses, and ineffectiveness in deploying these programs. 

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