Getting product to customers.
WHY DISTRIBUTION DETERMINES THE BUSINESS
Margins are thin and reach determines volume.
WHAT CHANNELS EXIST
Direct sale from the factory Distributors and wholesalers Retail outlets and kiosks Institutional supply Direct delivery to households and businesses
WHAT DISTRIBUTORS PROVIDE
Reach without your own vehicles.
WHAT THEY COST
Margin, and distance from the end customer.
WHAT TO ESTABLISH WITH ANY DISTRIBUTOR
Price and terms Territory Minimum volumes Payment arrangements How product is stored and handled
WHY STORAGE AND HANDLING
Product damaged or degraded in their hands damages your brand.
WHAT TO CALCULATE
Cost per delivery, and minimum viable order.
WHY
Small deliveries consume more than they earn.
WHAT TO ESTABLISH
Delivery routes and days.
WHY
Routing by order sequence rather than geography wastes the day.
WHAT VEHICLES REQUIRE
Capacity matched to the routes Loading that does not damage product Protection from sun and heat Maintenance
WHY SUN AND HEAT
They degrade product and packaging.
WHAT TO ESTABLISH ABOUT PAYMENT
Whether distribution is on cash or credit.
WHY IT MATTERS
Credit in this sector is common and frequently uncollected.
WHAT TO TRACK
Volume by channel and by customer Payment behaviour Returns and damage
WHAT TO ESTABLISH
Who owns the customer relationship.
WHY
Distributors who control the relationship can switch to another producer.
