Wednesday, August 9, 2017

How To Achieve Distribution Network Optimization

By Christopher Brown

As the supervisor of a particular department, you are the one who is typically called to explain why things are not going as they should. Therefore, to avoid these situations, you have to be proactive at all times. If you handle the marketing and distributions of products, then you need to ensure you have done all you can to ensure distribution network optimization. This is not always easy, but if you stick to some basic rules, it will not seem like an impossible task.

Before you start coming up with solutions, you need to know where the problem lies. Some people will send representatives to speak to the vendors who stock their products, while others will focus on the customers. Both options are viable, but you should combine them to get reliable data. When you continuously hold these surveys, you will be able to tell what the consumers like and dislike about your products.

Essentially, when you have poor sales, it is either because you are targeting the wrong people, or you are stocking the wrong products. Therefore, to correct a situation like this, you will either need to change the target market, choose a different geographical region or change your products.

Sometimes, you will notice that a particular sales person is not meeting the company set goals. By looking at how they work you will be able to tell what the problem is. However, before you immediately terminate their contract try moving them to a different department. Ideally, you should rotate your sales representatives at least yearly.

While looking at this whole process, you should include the input of other stakeholders. This way, nobody feels left out. You will also find that when you brainstorm with other people, it is easier to look at many scenarios and come up with different solutions. Avoid calling other people in during the last minute because this will just bring confusion. Instead, aim for their inclusion from the beginning.

The planning process will be bound to take some time, depending on the severity of the situation. However, you could start by implementing some short term solutions, while you work on some practical long term ones. Avoid taking shortcuts or making rash decisions, because this could further worsen the situation.

There are specific tools and software options you should consider when doing this work. These will help you analyze data quickly, and can also come up with various projections for you to compare. Even while using these tools you should also get experienced consultants to look at the situation.

Redesigning your distributions process will take up your time, and it will also require some money. The amount of money will depend on the particulars of your plan, but if your strategy is airtight, the invested funds will quickly be recovered. Ensure that the figures you present to the investors are all legitimate. Otherwise, this could further affect the company and cost you your job.

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