What is a Distribution Service/Channel?
A distribution service includes a chain of businesses or intermediaries which works as a distribution channel. Through distribution channel goods and services passes until the final product reaches to the buyer or end consumer. A distribution channel involves a number of intermediaries i.e. wholesaler, distributor, agents, jobbers, retailers, and even the Internet. The distribution service provided from one to the end user could be in the form of Business-to-Business (B2B) distribution or Business-to-Customer (B2C) distribution.
A distribution service and channel is the necessity to make the final product available to the consumer. An efficient and performing supply chain of distribution service helps a business to save money, due to faster delivery, short factory processing times, and better inventory management. This results into, reduced spoilage and decay of products.
However, the distribution service is going to automated in order to improve the delivery time and quality final product. Still, it requires a lot of improvement in the distribution service channels. As, only automation is not a guarantee to be a perfect service provider. Therefore, the distribution services require a lot of improvement and number of points to be focused on.
How to Improve Distribution Services?
1. Increase Real Time Visibility
The real time visibility of the movement of logistics makes distribution service more accurate and timely. Business automation makes an easy analysis of customer preferences and payment history gives a new insight to the customer. The distribution service can be enhanced by many folds with the adoption of automation technology. The business automation can be easily done with the BS PLUS Retail application software. However, the software makes easy availability and reach to the customers in real time and any time of the day.
2. Beware of Seasonal Demand Shift
As a matter of fact, the seasonal shift also effects the market demand in terms of low and high demand from consumers. Fulfilling the demand on time is the priority of every distribution channel. Therefore, being aware and ready about the future demand is crucial. So, a smart distribution service entity needs to analyze the market trends and be ready for that situation before the demand arises. As a result, a great and timely service is the requirement of every customer. Because being aware of customer demand shifts not only keep customers happy but also increase the efficiency within the distribution organization as well.
3. Maximize your Storage Space
Maximizing the storage space is not only about looking for new storage space and do expenses. However, it also means utilizing the available storage space to its maximum. A great and efficient management of available resources should have to be the priority in order to increase the business efficiency. By keeping your current warehouse in an organized and efficient manner, a distributor could increase productivity and simplify the functions without adding any extra expense. After all these changes and precautions, still the storage needs arises then can go for investment and seek another warehouse.
4. Monitor Cash Flow
Cash Flow Management is one of the best tools used to improve supplier management. As, for a supply chain it is very important to track payment terms and conditions to various groups involved in the supply chain of distribution service. However, it is one of the biggest priority of distribution service to monitor the cash flow. As, multiple channels are involved for a single product to reach to the final consumer. In addition to this, electronic management of cash flow also ease to track the shipment on real time.
5. Track Product Status on Real Time
By tracking the status of the delivery movement on real time allows the distribution service to know about the exact location of the shipment. This allows you to analyze the existing inventories. In addition to this, makes to ready for worst case as well. For example, any type of loss, accident, or destruction of shipment due to various reasons. Being informative about the status of the shipment is very crucial for a distribution service to manage its business and establish a good business.
6. Automate all Operations involved
Automating all the operations involved in the distribution services is a very positive step ahead. It helps to utilize all the available resources and keep a firm eye over all the changes made at any time. As well as managing all these things manually is very time-consuming and requires a huge amount of workforce. This results into, increase expenses and loss of time. Therefore, automating the operation involved in distribution service is very important.