If you’re in the business of manufacturing or supplying products, your distribution channel is one of the essential elements of your company. No matter how good your sales, promotions, or management teams are, the whole organisation will be affected if you have trouble in your distribution channel.
The two main concerns of distribution are cost and efficiency. And of the two, efficiency is the most critical. The sooner you can get a product into the hands of a consumer, the more respect and loyalty you will earn from the customer. Some companies might feel that product quality is the only way to build a brand, but customers are often more interested in fast transactions in these days of unlimited choice. A loyal customer is the best advertisement you can have, and their satisfaction is the most dependable way to build a strong foundation.
Distribution Model
In supplying a product, there are different ways to go. You can have a location where the customer can purchase goods directly. In this case, your main concerns are internal and have to do with inventory and supply. Another model is to deliver the goods directly. This model has been successful in the past, but today with so much specialisation in logistics, some companies are no longer able to justify the expense of maintaining delivery fleets. The third model is to make the product available. Usually online these days, and then contract out the logistics through a carrier or logistics operation. The choices here are numerous, from well-equipped taxi trucks Melbourne or your location can offer, to national and international carriers.
Efficiency
As stated earlier, efficiency is of paramount importance when considering distribution. Sometimes the best choice is to locate a well-equipped local distribution service that is nimble enough to make same-day deliveries and has sufficient vehicles to handle broad distribution. In the case of low volume, direct delivery is still the best option and provides added customer interaction which often facilitates future business.
How To Choose
The method through which your customer chooses a product influences how the product will be shipped. If your product is available through drop shipping sites, you might not have any say whatsoever, as the drop shipper will likely have their distribution channel already. If the customer purchases from you directly, then distance and timeliness become essential. You might want to contract a third-party service such as 3PL Melbourne or your city has to handle your distribution exclusively. You might also want to deliver directly, which can be important when considering delicate or technological equipment.
The world of logistics has changed a lot; there are so many technological enhancements that shipping can be nearly instantaneous. Tracking and inventory control have taken away many of the bugbears of delivery models. Today deliveries can be made within tight time constraints, and shippers can be flexible with time and location to suit the client.
Choosing a logistics company that offers the most flexibility and speed will benefit the customer and eliminate most of your distribution concerns. Distribution models will continue to evolve as self-driving vehicles and AI start to enter the field. A wise manager will keep options open and test new technologies as they become available.
