Some companies accumulate stocks in warehouses near warehouses to deliver goods immediately to consumers. In contrast, others rely on long-term delivery of customers who place orders directly from production. Bookkeeping aims to create professionals in the field of financial and management accounting, banking and budget accounting, control theory and tax control, financial and business analysis of the enterprise, etc. The design of the distribution network can be based on a particular condition of the market conditions within a specific geographical location, considering the company’s specific marketing strategy and the calculation of the optimal distribution plan for a particular category of product. The principle of the network system is as follows:
- The network system distributes products or services.
- In every network structure, electricity is at the bottom. If the value stops flowing, the reverse energy flow (cash) ends, and the system does not work.
- Only the lower level representative is responsible for the operation of the network structure.
The goal of the strategic planning of the distribution network is to develop a model that provides the most profitable distribution method to stabilize or increase consumer demand. An increase in the distribution network number leads to a reduction in transport costs and an increase in storage and storage costs and vice versa. Internet marketing is the driving force but cannot shorten the learning curve. You must develop your personality faster, which allows you to contribute to your world. Internet marketing is a system that will enable you to create creativity and have a positive impact on the lives of hundreds or even millions of people. When creating a distribution network, it is necessary to limit it to a rigorous structure. Because the company specializes in the production and sale of unusual building materials, distributors should be interested in selling products that use similar materials and storage space. The minimum monthly sales of each agency can reach several thousand. The other party must sell not only products but also advertise the brand. The goal is to generate demand for the product. The creation of a distribution network is not limited to short-term marketing budgets or small ones for off-season sales. As a result, the search for and attraction of potential partners occurs in five areas, as described below:
- Searching for customers
- Contextual advertisement placement
- Analysis of products of competitors
- Newsletters
- Arranging webinars
For example, having Radio Frequency Identification (RFID) can facilitate the visibility in real-time of the inventory, no matter where the assets are and can deliver the best service. Supply chains that rely on exceptional reports or analysis of periodic variation cannot address the demands of immediacy. As soon as a failure occurs, it must be known immediately and have people available to resolve the contingency. If you delay in opening the door, your client, current or potential, will continue his way and will not wait for you. The distribution network of products and services determines the supply chain. It leads to impacts on the highest indicators, such as the level of service, efficiency, and on-time delivery. Its importance should not be ignored in companies. On the contrary, it is essential to carry out a precise analysis of the logistics network’s methodology and strategy, contemplating all the resources and infrastructure.
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