In order to get the most from channel management you should consider extending your reach through a Broker Distributor System and a Broker Performance Management system.
Broker Distribution System:
No matter the size of a company’s own sales force we find that merchandising can generally be improved by utilizing a Broker Distributor to leverage regional relationships and merchandising. Often this arrangement dramatically improves listings at the wholesaler level and builds retail distribution and merchandising. First of all, Broker Distributors can offer better call frequency at both the wholesale and retail levels. Fiurthermore, on a regional basis, they generally have stronger relationships with key accounts.
People often cite the Japanese distribution system as confusing but it isn’t. It features Broker Distributors regionally and on a multilayered basis to the point where a retailer can order a single product (less than case load) which improves their product turns. Broker Distributors can be found in most industries in North America and increasingly in Europe and the Asia Pacific including Australia. Typically these arrangements are made on a sales commission basis usually about 7% of net sales but sometimes higher or lower depending on brand volume. But these Broker Distributors could carry 1300-2500 products in their book and can talk only about 3-4 products on an average call so don’t do it unless you can get more than your fair share of attention. That’s why we invented the Distributor Performance Management System.
Distributor Performance Management:
If your sales rank within a Distributors portfolio is #12 but you are getting more attention than the #3 and #4 brand groups then you are leveraging your channel and practicing excellent channel management. More often than not our consulting assignments show us that most companies have one or more distribution systems but almost no one manages them properly to maximize results. Isn’t it strange that as brand companies we have policies, performance appraisals and objectives with our own employees but we ship our products to distributors over whom we have little or no control. TopDeck’s proprietary Broker Performance Management System was invented for this purpose and is being used by rapidly expanding companies internationally.
We can help you to delegate responsibility to your Distributors and get more than your share of attention and success with the Distributor Performance Management System. We can establish it and manage it. We would also like to assess your distribution channels from a competitive standpoint. Their may be additional or alternative channels which will increase your sales and profit margin. Please call General Flood to discuss how we can help at 1-416-485-9900. Also in the shopping section we offer a consulting solution to assess your potential and a checklist for $1 to help you consider the potential for improved channel management.