samedi 7 janvier 2017

Factors Affecting Distribution Network Design

By Christine Smith


Without proper supply tactics, many products would not have the chance to be seen in the market and consumers would not know about them. Manufacturers have to set up proper plans to ensure that their products reach users in a timely fashion. These plans are better known as Distribution Network Design and they include people, stores and transport facilities.

There are merchandises that do not reach some places where users need them and this usually happens because the producer does not put in place functional designs for their product to reach all users. To ensure that a product reaches its target market, its producers must understand that different techniques work for different products and they should find a system that will best supply their item.

Selecting the right plan will be crucial for the business. The design chosen will determine how the product will be handled and how fast it will reach its desired target. To select the right system, one has to understand the product, is it perishable or does it have a long shelf life. Again if the product is for consumption, one has to make sure that proper retailers are involved in the process to ensure the product reaches its market.

Since there are many companies distributing their products at the same time, competition is always tough but this should not be a turn down. A firm can find out the strategies competitors are using to do their distributions and capitalize on areas where they are making mistakes, or they can also implement techniques that the competitors are not using to gain an upper hand.

When selecting a supply strategy, a company must make sure that it uses the least amount of revenue yet attain high levels of client satisfaction as well as ensuring distribution is efficient. Firms will have to employ and train people on their preferred strategy and they must also ensure that the benefits of doing that will outweigh the revenues spent.

There are some factors that will determine how effective a distribution plan is and these should be carefully looked at. As much as service and quality are major factors in selecting a plan, the cost of the process is still a big player in decision making. A successful system will operate within the boundaries of its values yet take up the least amount of funds to maintain profitability margins.

The way the government is involved will also be a major factor. The authorities involvement comes in terms of the laws set that affect taxes, labor as well as transportation restrictions. Firms have to be aware of such things and must be up to date with the current regulations to ensure that they make well informed decisions and avoid ending up on the wrong side of the law.

Firm heads are advised to have a list of possible strategies to use and from that list they can rate the strategies from the one they feel will be most suitable to the one they feel will be least suitable. After a strategy is implemented and is working properly, they are allowed to look for other strategies that complement their main plan in order to increase service and profitability.




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