Distribution Strategy: Centralized Versus Decentralized

The kind of distribution strategy that you choose to incorporate into your organization can have a significant impact on your operations as well as your profit making abilities. The productivity can also be affected if the wrong decisions regarding centralization or decentralization are taken by the company management. The decision of whether to go in for the former or the latter should depend entirely on particular business needs. For certain businesses, a centralized system of distribution may work best while for certain others, a decentralized strategy may lead to the highest profits. In the case of some organizations however, a mélange of the two works best. Thus several factors need to be considered before this decision is made.

In case your company has a widespread customer base that even includes international and overseas customers, it is advisable to go in for a decentralized distribution strategy that can help minimize costs of maintaining supply chains. A centralized distribution system in such a case can prove to be highly expensive and can even make it difficult for your company to maintain profits. A decentralized system helps bring in enhanced efficiency as local dealers and distributors are more aware of the demand structures of the local populations. It is also easy for local distributors to maintain contact with the end customers and assess their requirements that can then be conveyed to the company providing products for sale.

A centralized system is deemed to be more suitable for business organizations that either have a local area of operation or are enterprises with a highly inflated capital structure and can afford to invest in their separate department of distribution and employ workers in different geographical locations to distribute goods. In such a case, the profits made by eliminating the middlemen and going in for direct distribution generally tend to be more than the investments required for supplying the products. Only companies that can afford to invest in infrastructure and technologies needed for distribution to far off locations should opt for a centralized system of distribution. A significant advantage of having this kind of a system is that the ultimate control rests with the company itself and power need not be divested to the lower levels.

For more information, contact McLane Logistics Technology located at 4001 Central Pointe Parkway, Temple, TX 76504. You can also call them at 1-800-989-7568.

Distribution Management System - Distribution Management Software

Microsoft Dynamics AX 2012

Microsoft Dynamics AX 2012 is essentially business software that helps you run your business in a highly efficient and streamlined manner. It not only helps integrate varied processes but also helps find management solutions in a cost-effective manner without the need to employ expensive strategies. The best thing about Microsoft Dynamics AX is that it has been created on the lines of Microsoft software that already exist in the market thus making it easy to adapt to and use for business employees. It helps establish connections with international consumers and clients by incorporating automated functions for operations that would have otherwise been time consuming and expensive.

There are different types of functional aspects that you can choose from in this innovative software including production, distribution of products or services, financing or funding of a project, management of finances, human resources, analysis of business plans, supply chain processes. Customer services, internet services, etc. It is easy to incorporate Microsoft Dynamics AX into any business organization due to its high integrative qualities. Another feature that this software offers is that it allows to make important business related operations fully automated so that there is no tedious manual record keeping that not only causes huge time wastage but also leads to higher costs as employees are needed at every level to feed in data and check it for mistakes. The availability of accurate data can be quite helpful when it comes to decision making processes and thus helps you maintain an edge over your competitors.

There are no special tools required to work with Microsoft Dynamics AX software. This breakthrough software allows businesses to integrate different operations like customer services, maintenance of supply chains and financial aspects. Microsoft Dynamics AX is highly customizable and can be altered on the basis of layers. Thus users are able to adapt a single layer as per their requirements without having to make any changes in the way the other layers are functioning. This feature allows you to make the requisite changes in the software over time as your needs change without having to make additional expenses.

For more information, contact McLane Logistics Technology located at 4001 Central Pointe Parkway, Temple, TX 76504. You can also call them at 1-800-989-7568.

Dynamics AX 2012 - AX Dynamics Inventory

Requisites For Effective Distribution Network Planning

Distribution network planning is a very important managerial function that needs to be performed on a consistent basis in order to ensure the maximum customer satisfaction and generating targeted sales. Distribution planning can be instrumental in determining the sales that your enterprise is able to make on a monthly or an annual basis as it is the way that the delivery of your products is organized can have a lasting impact on whether your products will be preferred by customers or not. The way that your distribution network has been set up can make or mar your business in terms of its market standing and success. Some of the requisites that need to be in place for effective distribution network planning have been specified below:

1. The number one driving factor for formulating a distribution network plan is the amount of investment that will need to be made by your enterprise to ensure timely deliveries to customers. The expenses must be justified in terms of the amount that your company is able to recover by way of subsequent sales. Transportation methods that are economical and lead to the lowest possible costs must be preferred to boost profits.
2. Another aspect that you need to pay attention to is the amount of time that is being taken for the delivery of a single product. The ideal time for product delivery can vary depending on the kind of product that you are supplying and whether you are selling to international or only domestic consumers.
3. Effective distribution planning also calls for the setting up of a supervision network that is able to keep track of the exact location of a product and is also able to provide such information to the intended customers who wish to track their shipments. There are several ways to do so one of them being appropriating a unique tracking ID to each product so that customers are able to find out the scheduled time of delivery just by logging on to your business website. This not only helps build trust but also leads to higher levels of customer satisfaction.

For more information, contact McLane Logistics Technology located at 4001 Central Pointe Parkway, Temple, TX 76504. You can also call them at 1-800-989-7568. 

Distribution Management Software - Distribution Management System

Optimizing Supply Chain Management

Supply chain management is an inherent part of managerial activity and forms the core of any good distribution network. New software that helps to regulate the supply chain are gradually doing away with the need to employ expensive manpower for the same thus making it a more economical process. Companies that follow sound supply chain management practices generally register more sales and increased profits in the long run compared to those that rely on hit and trial methods of maintaining stock and managing distribution. Some of the guidelines that can help you optimize supply chain management activities in your organization have been enumerated below:

1. It is very important to establish a hierarchy and accountability so that it becomes easier to pin point exactly where your supply chain management process went wrong. Employees that have been hired to supervise the different stages in the supply chain should have clearly defined functions and senior staff that they can report to in a timely manner. In order to establish accountability, it is important to formulate appropriate standards so that comparisons can be made at every level. In order to make these comparisons, software can be employed for the maximum amount of accuracy and effectiveness.
2. A cost benefit analysis must be done while determining the different processes that are going to be followed in your supply chain management process so as to ensure that the expenses incurred in formulating an effective supply chain do not outweigh the benefits derived from it in terms of increased profits. It is best to go in for technologies and software that help manage the supply chain in an economic manner without heavy investment.
3. You must conduct an assessment of the resources available in your organization before you decide whether you should handle the supply chain process on your own or outsource it to a third party. In some cases where a high degree of specialization is required to manage the supply chain, it is advisable to go in for a specialist in the field for the best results. If your company does not possess the technical know-how and skills required to come up with an effective supply chain management plan and implement it, it is best to seek support elsewhere.

For more details, contact McLane Logistics Technology, located at 4001 Central Pointe, Parkway, Temple, TX 76504. You can also call them at 1-800-989-7568.

Supply Chain Management System - Supply Chain Management Software