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Distribution Management – What do most businesses overlook?

August 21, 2019 - Deepak Parwani Senior Consultant, EdgeVerve

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Businesses spend years in building an efficient distribution network. Through the distribution network, every business strives to make its products available for consumption at the right place at the right time and at the right price point. Not being able to do that can easily lead to loss of revenue and customer churn. This holds especially true in low involvement products where there isn’t much differentiation within competitors.

On the other hand, efficient distribution can be a huge differentiator for a business and gives it an edge in the marketplace, irrespective of any differentiation in the product or price. Just the availability of the products as per consumer’s comfort can help a business grow. All the investments in customer acquisition initiatives like marketing, advertisements, promotions etc. can go for a toss in the absence of a robust distribution setup. It is like generating the demand for your products but not being able to fulfill it. It is a straight opportunity loss – apart from the customer experience and perception thatgets impacted, which is one the toughest challenges in marketing to correct.

You would already be aware of the above facts. Businesses have been working on it since last 2-3 decades. Most large players have extremely strong distribution networks now. They have done all the heavy lifting in setting up their supply chain which moves goods from factories till it hits the shelves.

While you may have a robust distribution network, here are a few things that you may have overlooked:

Deepak Parwani

Senior Consultant, EdgeVerve

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