Effective Stock Distribution through Channel Management This document is about channel partner strategy and channel management software and how they help to effective stock distribution.
I was cleaning the house when I found my kid’s old Gameboy Advance; it was lying on the floor. I fiddled with it and played Jurassic Park Builder. Unlike the other actionpacked Jurassic Park games, you don’t have to fight dinosaurs in this one. All you have to do is manage a dinosaur theme park. It allows you to create restaurants, gifts shops, cafes and cages filled with dinosaurs. It is very businessoriented because you have to play the big boss by doing marketing campaigns, managing funds, and setting prices for
merchandise and other management duties. After hours of attempts my Jurassic parks always end up in bankruptcy. My park expanded enormously having multiple restaurants, cafes, gift shops and other business establishments. However it was very difficult to management each of them. I have to check visitor’s feedback and adjust prices of each establishment. Later on I realized that the park is not earning well and the problem with budget expenses is immensely getting out of control. The whole process was very tricky. Managing business is very difficult that is why manufacturing companies who have a global number of channels are looking for ways to manage their indirect sales. However there is a way to effectively manage channels or channel partner strategy and avoid profit lost and other bigger commerce problems. Channel Management is the key to maximize indirect selling groups and increase revenue. It is a management procedure of the retail shelf. It is highly needed to ensure that overstocking of supplies at slowerselling stores and understocking at higherselling stores do not happen. In the game I am playing certain shops sell more of a certain product but that product sells poorly in other shops. This is because of factors like customer buying pattern and location of the shop
itself, it is highly advisable to consider these factors in managing business. Another thing to consider is the type of product or service each shop offers in effective stock distribution. By implementing managing system for resellers and distributors, manufacturing companies will be able to effectively distribute the right number of stocks and supplies to their stores depending on the sales status of each store. Effective distribution of supplies can be achieved by thoroughly studying point of sale and sell through data. Another thing to consider is the type of product or service each shop offers. When I was playing Jurassic Park builder, I observed that certain shops have many customers while other shops which offer the same merchandise has fewer customers. Probably this is because of the location of each shop. Another factor that affects sales is the marketing campaign, each marketing campaign attracts a certain group of the target market and frequently it does not encompasses all target market. Devising a favorable marketing campaign for each channel is very complex. Through implementing channel management or channel partner strategy system manufacturing companies will be able to have an end to end visibility of the resellers and distributors’ activities including marketing campaigns, communications and funds. Running a major business company is a very complex
task and it easy to overlook the performance of each reseller and distributor which often leads to inefficient stock distribution.
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