Distribution strategy
Decades before, manufacturing provided the competitive edge for an organization. As years passed by, every organization mastered the art of efficiency, reliability, and consistency in manufacturing. That crucial role of providing an edge over the competition is filled by none other than the distribution.
Distribution strategy develops a plan by which an Organization designs an opt channel to reach the customer and also ensures that the required products can reach their customers on time. Part of the distribution strategy is the optimization of the overall distribution cost and service fill.
“An optimized supply chain network operates on optimum level of channel inventory, seamless customer experience, reduced costs, and enhanced service levels”
– Alvis Lazarus
Distribution strategy is done in three stages:
Mapping the source points, stocking points, intermediate transit points, and final delivery points.
Simulation model is built for every channel that has to be evaluated. The simulation model is used to run all possible scenarios and arrive at the optimum channel which ensures right distribution cost and service fill.
Stress test the built model with multiple scenarios before the final strategy is arrived at. Once the distribution strategy is arrived at, the specific workflow for each step within the distribution and the related cost of operations are documented.