Supply chain is a sequential process which starts from the purchase of raw material and manufacturing and usually ends on supplying the goods to the end consumer. This involves a number of intermediaries as well. One of the most important intermediary and the backbone of the supply chain process is the distribution center. If the distribution channel is inefficient, it would cost both the manufactures and the consumers. Therefore, it is very important to properly manage your distribution channel to make sure that the supply chain is properly working and goods are delivered on a timely basis without any delays and damage.
Main reason to use distribution channels:
There are several reasons to use distribution channels but the main reason why manufacturers prefer to use distribution channels in spite of providing the goods to retail shops on their own is that distribution channels are specialized in their tasks and they have good relations with the retail outlets in personal capacity. However, in order to get seamless distribution process one has to be very critical and observant while selecting the distribution channels because if any delays are occurred there would be no goods on the retail stores to sell and therefore reputation of the company would suffer and whole mechanism would also be affected. This is the reason why companies put emphasis on quality distribution centers.
Better to hire specialists!
There are numerous companies that provide pallet distribution services across the UK and have specialized in their transportation business. These companies have good connections with retail outlets and therefore selling becomes relatively easy and burden is also distributed. Further, this also creates an opportunity of employment which is definitely good at a broader level.
Use of HGVs in distribution:
Use of Heavy Goods Vehicle is evident in the distribution industry because distribution often involves pallets and these are distributed from long distances therefore durable and reliable transport service is required which can take heavy load on long routes and can be relied on all the time. Companies can also devise their own transport system but this is usually costly and not economically suitable. Some intermediary distributors also provide storage and warehouse facilities which are in addition to the distribution center in order to earn extra profit. These are specialized in their work and therefore it is advisable to rely on these specialized distribution channels.
Direct and indirect benefits of distribution channels:
In order to sell directly to the end consumer, it is not always efficient for the manufacturing concern because it has a lot of other things to look into and it is not quite possible to look into the distribution channel as well. Further, distributors are usually representing a lot of companies and therefore it is easier for the customer or the retail person to compare the products and pick the competitive product. But if it is the manufacturer who has to directly sell the product to retail outlet it would become quite a difficult task for him to manage the sales! LTS Global is distributing from a number of years and a huge retail outlet data base with very positive feedback.
There are many other benefits associated to the use of distribution channels. It offers a proper channel of communication between customer and manufacturer and the best part is that third party is most of the time neutral and is a very good source to get customers feedback.
It also increases the economies of scale because manufacturing concern would definitely reduce the cost of selling and negotiating. It won’t be required to negotiate with each customer in order to sell the product hence this responsibility would be taken by the distribution channel and thus making the company free.
Pallets have a remarkable history, these have been in use for more than a century and have produced a remarkable change in the industry of transport. Previously, things were not delivered in best quality but now these are delivered to long distant destinations in the same condition as they were dispatched. This is because of the blessing of technology and use of high end transportation vehicles with latest and strong pallets. Pallets are very important and significant part of distribution channel. There are many different types of pallets and are used depending on the size and nature of the product to be delivered.
LTS Global is specialized and has certain plus points than others mainly because of their access to highways and use of reliable and high tech transport vehicles. Collection hours are usually very flexible with the management of manufacturing concern and delivery hours are specially managed to suit the retail outlets. They have devised a strong mechanism where the try to reduce the gap between company and retailers through their best intermediary services.
Choice of distribution:
Choice of distribution is very important because it is the backbone of the business and this is how products are actually being delivered to the retailers and then ultimately to the consumers. Therefore, it is very important to make the best choice regarding the distribution channel. The choice of distribution channel is dependent on certain factors which are discussed. Nature of the market plays an important part in selection of distribution channel. Some markets require more efficient distributors than ever. Similarly the nature of products also is an important thing in making a decision about choice of distributor. Perishable or nonperishable products make a difference. The weight and bulk volumes of the product are also important to consider. Apart from these factors, environmental factors must also be considered including but not limited to legal factors, technological factors and economic factors.
In order to run your big manufacturing entity, it is very essential to make good decisions about distribution channels. It is not advised to use nonprofessional and in efficient distribution channels just to save a few bucks, in fact it is very much advisable to invest some amount in distribution channel in order to get the best benefit in terms of customer satisfaction and retention!