Question

Explain challenges/problems faced by a distribution channel and how to overcome it. please include examples too. thank you

Answer 1

Challenges faced by distribution channel are as follows-

1. Inaccurate stock management- some businesses required to track inventory manually, this results into laborious and inefficient.

2. Lack of digital record of the inventory, would make it tough for the stakeholders to make decisions towards re-stocking

3. Manipulation in trade schemes- anyone can manipulate the controlling parameters without the end customers knowing

4. Manipulation of cost estimation and misrepresentation of transactions in accounting records are repetitive event within marketing teams

5. Existing manual and monotonous procedures waste time and decrease the work productivity

6. Distribution structure lacks the ability to measure and deliver a valuable business insight

7. Lack of communication between manufacturer, agents, wholesaler and retailer

8. For example: adding online sales might require a website program, credit card processing fees, inbound telephone calls from shoppers, etc., create budget for each new distribution channel you add and it can also occurs conflict between them.

Recommendations or remedies to overcome from these challenges-

1. Comprehensive distribution system can help to optimize stakeholder’s time

2. Install proper digital system to track records of inventory

3. No manipulation in trade schemes should be there

4. A proactive system should be required which can divert marketing spends to focus on acquiring consumer insight

5. Management system which can generate customizable reports on real time basis.

6. Disruptive applications of technology can change the distribution structure of company

7. Manage conflicts occurs between distribution channel