Distribution Failure.

Distribution Failure

The success of a company’s products is directly dependant on whether the company has a good distribution set up. Companies in the FMCG, Telecom and Consumer durable sector rely mostly on distributors to push their products to the end consumers via retailers.

Of late many companies are facing problems with distributors which is resulting in poor distribution thereby resulting in sales being affected as the products are not available to the customers as and when required.

To a certain extent the problem lies with the distributors, but in a majority of the cases it is the company to be blamed for the mess it has created for itself. The company person managing the distributor is the biggest reason in killing the distribution. Even before the distribution collapses, there are warning signals evident 2-3 months prior and if remedial measures are taken on time, the distribution would be smooth and as per the expectation of the company.

The problems faced by the distributors for which the person managing the distributors is responsible are…..

Non moving stock / slow moving stock. Dumped by company person and taking no effort is ensuring liquidation.

Not getting along well with the distributor – EGO clashes.

Scheme settlement not done by company and no effort taken by the company personnel in clearing the same.

Market outstanding beyond limits due to dumping of stocks by company person.

Market coverage issues.

No market working by company personnel. Spending more time at distributor office.

Many companies whose distribution is smooth have taken care of the above mentioned points and have succeeded at the market place.

 If there is a problem, the management has to look into the same and one of the above points would be the reason for distribution failure.