Monday, January 9, 2017

Choosing A Functional Distribution Network Design

By Christine Smith


For a firm to be successful in its operations, it has to make sure that its products are well distributed until they reach the final consumer. The firm has to set up a functioning system that includes a network of people, storage facilities and transportation that will efficiently move its products, otherwise known as a Distribution Network Design.

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.

Before selecting a design to implement, a business first has to market its product in all the areas it wants the product to reach. With products being almost similar, most companies use same techniques to market them and this makes competition fierce. A focused business will look for alternative methods of marketing which will give it an edge over its competitors and have its product gain more audience.

With the main goal of doing business being revenue generation, most companies tend to focus on this and forget the important aspect of customer satisfaction. To make sure the consumers are satisfied with the product, a firm always has to train its employees on how to market the product and assure consumers satisfaction. However, the firm has to verify that it does not spend too much on the trainings yet have few paybacks from it.

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.

Before settling on a strategy to fully implement, a firm must vigorously check out all the available options on the table. This is done by checking how much will be used to implement a design against how beneficial it will be in the long run. After one has been chosen, it is also necessary to keep an open mind as new strategies may come through later that might make operations run much easily.




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