The supply chain and distribution channel is not your daddy's supply chain and distribution channel anymore. In fact, today's distribution chain is facing unprecedented changes that pose challenges and rewards to all participants in the supply and distribution trade.
Partners all along the "traditional" distribution and supply chain channel are being challenged by new entrants into supply and distribution markets across many industries. The waters have been muddied by the Internet and the introduction of consumers and end-users into supply chain distribution.
Successful distribution and supply chain management is characterized by a solid organization featuring a centralized hub supported by satellite chain distributor. Picture it as the spokes of a wheel connected at the middle--the hub.
The "new" supply chain and distribution channel has several key components, which fall under the supply chain management "umbrella." These components include:
1. Distribution--the physical logistics of moving inventory along a chain of distribution.
2. Inventory management--the entities that control how much is moved and where it is stored.
3. Customers--identifying who the "real" customers are and keeping their loyalty despite all of the changes to the supply chain and distribution channel.
Action Steps
The best contacts and resources to help you get it done
Plan the chain of distribution carefully
Manage your plan from within your chain, not from above. If you use statistics and historical data, you are not getting the whole picture. Talk to your partners and understand their needs using the traditional one-on-one approach.
I recommend: Examine successful supply chain distribution, some examples of companies that have refined and reworked their own distribution and supply chain management strategies. These include
Dell Computers, which has assembled a world-class distribution chain and
Praxair, which advertises itself as "North America's largest inventory of welding equipment, filler metals, gas apparatus, and safety products."
Choose your distribution chain players
Who do you trust to make you successful? The answer should be your distributor partner. Not only is that partner a known commodity, but they can also provide business in the growing global market. Your newest partner could be half a world away, thanks to globalization and the new global economy.
I recommend: Meet the changing face of supply distribution markets by being "fully loaded" with two types of channel partners: private equity firms and planning/forecasting consultants. Contact
Supply Chain Equity Partners for questions on investment possibilities and
Supply Chain Consultants for forecast improvement analysis.
Use supporting distribution chain management software
Technology has made supply chain management for distributors manageable and reliable. Supply chain management software helps in planning, projecting and implementing the chain of distribution.
I recommend: There are many different software programs to choose. It is best to test drive a few before finding the one that suits your business model the best. Request more information and product trials with
Netsuite and
Logility.
Ross SCM software provides original solutions to manufacturers of the food and beverage, life sciences, metals, chemicals and natural product industries. Are you in the retail and wholesale distribution business?
Sentai's Trax Distribution offers an integrated accounting and inventory control solution. Request a free demo.
Tips & Tactics
Helpful advice for making the most of this Guide
- Plan and implement a supply chain and distribution program, understanding the role of each player along the distribution channel, including the "new" global community and the changing face of end-users.
- Research the tools and training needed to have a successful supply chain distribution strategy.
The official source of Supply Chain Distribution is
the Supply Chain Distribution page at Business.com
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