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    Channel Distribution Sales and Management
    Channel Distribution Sales and Management
    Channel Distribution Sales and Management
    Ebook125 pages1 hour

    Channel Distribution Sales and Management

    By Robert D Hastings

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    About this ebook

    Distribution networks are now e based and this change has made the old channel process obsolete. This book is written by an expert in channel management and development and includes chapters on the most important areas of channel process.
    Channel sales and management is one of the largest industry networks in the world and this book offers a broad scope of skills and information to be successful in this highly competitive market.
    The book covers a range of areas from successful selling, channel management and supply chain management metrics, differing type of channels and marketing processes which offer success and integration. Channel finance, IT enablement and Channel management at national and local area are discussed.
    If you want information on how to be more effective at channel sales and management as well as a broad understanding of marketing and Channel metrics this is the book for you.

    LanguageEnglish
    PublisherRobert D Hastings
    Release dateSep 15, 2013
    ISBN9781310256530
    Channel Distribution Sales and Management
    Author

    Robert D Hastings

    Robert is a seasoned business manager offering expertise in General and Sales management across a range of market verticals and primarily in IT and Network environments. Rob has built and sold his own businesses and has on many occasions acted in a consultancy capacity in Small Business management, marketing and finance Education Master of Business Administration University New England / Southern Cross University Experience: Broad experience in management of IT& T industries including video conferencing voice, IP, security, storage, services, professional services, managed services, management consulting, succession planning, organizational development Excellent understanding of sales, distribution channel and wholesale in the ANZ market and SEA

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    Book preview

    Channel Distribution Sales and Management - Robert D Hastings

    FOREWORD

    Distribution is the world’s largest business. The direction and channels of the multi various segments integrate into the world commerce system through a plethora of different markets, verticals, products and services. Those channels, the variety of distribution methods are facing far reaching changes in stock, delivery, warehousing, finance, communication and IT processes.

    The capability to sell into and manage distribution businesses continues to be in demand as many vendors and manufacturers view distribution as the cost effective road to market against the cost of direct sales and representation.

    Distribution methodology including the ongoing need for business efficiencies has evolved requiring a high level of expertise and investment.

    Distribution specialisation from vendor and manufacturer to distributors who offer volume and value added services down to resellers, value added resellers, service professionals and system integrators has become a network with highly defined boundaries.

    The term Supply Chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the product or service to the customer.

    Distribution management refers to overseeing the movement of goods from supplier or manufacturer to point of sale.

    Distribution management is an overarching term that refers to numerous activities and processes such as packaging, inventory, warehousing, supply chain and logistics.

    DISTRIBUTION

    Balances supply and demand through the channel

    Protects against uncertainty of supply and demand

    Supports production requirements

    So, you can see that supply chain is a term that refers to all of the activities between the company and its suppliers whilst distribution is the management of all the processes of goods or services distribution which includes packaging, inventory, sales, logistics and yes, the supply chain.

    Distribution businesses worldwide are inherent in most markets and in most developed markets; there are mature distribution networks that transact billions of dollars as a business structure. Most consumers are dependent on the efficiency of those businesses to deliver products and services on time and at expected costs.

    The role of sales people and customer sales in general has changed significantly over the past twenty years. A professional sales person today holds significant responsibility and working with customers who have wide -ranging knowledge of sales process and in many cases hold high expectations of the sales interface.

    A career in distribution and working with retailers and resellers from either the vendor manufacturer or the distributor can be a very rewarding goal and one that offers good compensation for the work achieved.

    Building a successful distribution business requires a significant amount of up-front investment in time and application but the results of the required planning and hours repay quickly and in most cases for the very long term.

    The role of sales is fundamental to distribution success but it differs from direct sales for a range of reasons that are introduced in this book but the focus relates to the need to gain longevity in the relationship.

    Creating an ongoing partnership that spans time and issues is vital in providing the reseller or retailer with a supported product or service and the salesperson with a rewarding long-term business relationship.

    There are ongoing discussions as to where the fundamental changes are taking place in distribution efficiencies and evolution and we take the approach that all vendors and distributors have accepted the need to change to take up the competitiveness that has evolved from the age of the web and instant communications.

    The size and depth of the distribution market is the largest industry in the world and we will relate the pivotal role that sales holds in the ongoing success of distribution businesses that are constantly evolving to be market responsive and therefore gain increasing sales.

    We review that there are a range of specialised distribution companies who are seeking higher margin markets and business verticals where ‘niche’ is the chosen market position.

    The purpose of this book is to offer a review of the basic requirements of sales into distribution ‘channels’ and the factors that affect success or failure in this increasingly competitive and worldwide market.

    In this book, we have taken the position that you may not have significant experience in distribution channel sales and for that reason we have included a range of chapters that clearly define the distribution roles and requirements to success.

    There are fundamental changes between the two primary business sales markets of ‘Business to Business’ and ‘Business to Consumer’ and the requirements of the sales function between the two methodologies differs dependent on the product and market requirements.

    In this book, we concentrate mainly on the ‘Business to Business’ market in a distribution network.

    We are in the age of relationship marketing and this is reviewed in this book in which we note that relationships in distribution channels are of great importance. Selling in distribution cannot be successful if the thinking is short term.

    SUPPLY CHAIN VS DISTRIBUTION CHANNELS

    A Supply chain is the procedure of all parties involved full or part time in fulfilling a customer request. The supply chain comprises the flow of products, resources and funds between the different stages of creating and selling a product.

    Every step in the process, from creating a good or service, manufacturing it, transporting it to a place of sale, and then selling is the manufacturers supply system. The supply chain includes all functions involved in receiving and filling a customer request. These functions include product development, marketing, operations, distribution, and finance and customer service.

    A distribution channel is a chain of businesses or intermediaries through which goods or service/s passes until it reaches the end customer. It can comprise wholesalers, retailers, distributors and even the internet itself. Channels are broken into direct and indirect forms, with a direct channel allowing the customer to buy the good from the company, and an indirect channel allowing the consumer to buy the good from a wholesaler or retailer.

    UNDERSTANDING DISTRIBUTION AND THE CHANNEL RELATIONSHIP

    The word ‘channel’ relates to distribution and it is used in its most generic and common terminology. We use it frequently throughout this book, as it is a worldwide term and used across the length and breadth of distribution networks.

    The word ‘channel’ is prevalent in many distribution networks and defines a path or chain from the distribution process to specialised market intermediaries. You could view it as channels of water (goods or services) flowing off a lake and the role of those channels is to distribute the water to other areas.

    As a description of this channel or chain effect, it is important to note product flows down the chain to the next organization before it reaches the final destination point of a product or service to a consumer or end-user.

    This process creates a distribution or channel process. Each of the elements in the product or service progression will have their own specific needs, which the vendor or manufacturer must take into account, along with those of the all-important end-user.

    As an example of how this progression operates can be viewed if you see distribution as a river of product or services that runs from the vendor or manufacturer to the end user.

    On the way down to the end user, there are many channels that run off the river into side streams and each of those side channels offer a flow to end users.

    Those channels are dependent on that river of product or services flowing freely, the type

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