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As Supply Chain management professionals, we must ensure that supply chain initiatives are optimised to meet various channel strategies. The differences between channels of distribution, such as specific customer or product needs, can have a major impact on supply chain solutions.
In developing improved channel strategies, our work may often focus on:
- Articulation of contributions from different customers and customer groups, perhaps through Cost to Serve Analysis.
- Gaining clear direction as to how to achieve optimum profitability from different channels
- Ensuring service alignment to meet profit objectives
- Creating cost alignment to meet profit objectives
Shared Distribution?
A review of distribution channel strategy can often highlight opportunities for shared distribution. Many companies have shied away from this in the past , fearing a loss of cost and service differentiation in the market place, but attitudes are now changing.
Check out our Related Supply Chain Strategy Page Below:
Supply Chain Strategy Alignment – Logistics Strategy
Logistics VietShip have undertaken a number of reviews recently that have assessed the potential benefits of competitors sharing distribution facilities and/or delivery transport. This type of work is undertaken within a strict set of agreed boundaries to ensure that each companies information is handled with the appropriate degree of confidentiality.
