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:
- 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.
- 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.
- 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.
