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Formation of an Effective Product Distribution System Using IT Technologies

In the words of Bill Gates, “Technology is nothing without a product.” We live in a world where a company could be selling its products on an international scale. However, it would be impractical and ineffective for one person to handle all of those tasks and responsibilities on their own. In order to successfully sell a product without any issues, there needs to be an effective distribution system in place. This blog post will go through different options that can help create such distribution systems using different technologies.

Many areas need to be looked at when creating a distribution system. The first thing that needs to be determined is how the products will be packaged. This can range from smaller packages containing only one product to larger packages containing multiple items. It is important to remember that the size of the package will affect how much will be spent on shipping, so this should be considered before finalizing which packaging option will be used. The next element of distribution is shipping routes and methods. Having a good shipping method not only means it gets there faster, but also cheaper. A good way to ship your product is through using a partner with their own fleet of planes or trucks.

The advancement in technology has led to the introduction of automated systems to manage supply chain processes. Some of the automated systems include TMS, WMS, and ERP. These systems can be integrated with functional modules to improve their functionalities. Read more about how this module integration will help in improving your logistics software on Yalantis.com.

In this article, we will discuss many effective IT technologies product distribution systems. Besides, the article will compile a list of the various channels of distribution alongside much more important information.


Types of Distribution


There are many ways to distribute products. Some of these options include mail orders, online stores, brick-and-mortar stores, physical distribution (in person or through catalogs), and e-commerce. As stated before, each type of distribution has its own perks. It is important to consider who your target market is before deciding which type of distribution will be the best for selling your product.

Mail Order

Mail-order businesses have been around for a long time. There are many benefits to using this method of distributing goods. The most obvious benefit is that you do not have to be present in other locations to sell your products. This means that you can maintain a virtual presence and interact with customers through catalogs, flyers, and online stores instead of traveling around the country or the world. Mail-order businesses also have the ability to ship directly from their warehouse instead of holding on to inventory in other locations.

Online Stores

An online store allows a customer to browse and purchase items in a wide range of categories including software, movies, music, books, and many other types of products. Online stores have the ability to ship from a warehouse located in any location around the world. Another benefit of using an online store as your distribution method is that you can offer special deals, discounts, and coupons for purchasing products through their website.

Brick and Mortar (In-Person or Through Catalogs)

Most businesses prefer to sell their products in person or through catalogs. This gives the business the ability to interact with their customers face-to-face. It also allows the customer to ask questions and feel more at ease at the store. Physical distribution is a big choice when it comes to choosing your distribution method because this allows for a more personal interaction which increases social proof. The downside of using a physical store is that it can be expensive and time-consuming, but having a brick and mortar is beneficial because it attracts new customers into your business.

E-Commerce

E-commerce websites are the fastest-growing distribution method in the world. There are many benefits to using e-commerce for your distribution method including increased business efficiency, reduced cost of operations, and convenience via direct access to the customer. E-commerce gives your company the ability to have a global presence and reach a larger audience. The benefits of e-commerce continue to grow because it gives customers easy access 24/7, saves time for both buyer and seller by eliminating any travel involved in purchasing or distributing goods, allows for real-time search with instant results, decreases human error through automatic data entry, and helps reach untapped markets due to globalization of business. To learn how to create your own Ecommerce store, click on the following link. https://www.websitebuilderexpert.com/building-online-stores/


Choosing The Right Distribution Channels


Choosing the right distribution channels is important because it will determine whether or not your company will be successful. Finding a channel that makes sense for your market, products, customers, and brand is essential to running a successful company. Safeguarding yourself from potential competitors is an important part of choosing the right channels because it allows you to focus on your unique selling points. The following is a list of possible distribution channels to use for your business.

Retail

Retailers allow you to sell your products in their store in exchange for a commission. This is a very popular channel among small business owners because it helps build customer loyalty and brand awareness.

Wholesale

Wholesalers allow you to sell your products to retailers in exchange for a small commission. Wholesalers are beneficial because they bring you closer to the customer and provide an easy way for retailers to purchase your products.

Direct Sales Force

Using a direct sales force allows you to get close with your customers by selling directly out of your own office or home. This method is good for small businesses that want the personal touch of helping out their customers and being able to build lasting relationships but do not want all the expenses of having a storefront business. This is also beneficial because it reduces the company’s overhead costs. The downside is that it limits what regions you can sell in without being present there.

As with any business, there is a multitude of things to keep in mind when deciding on how to distribute your products. Your decision will affect the success of your business and whether or not someone will be willing to purchase your product.

Technology that helps distribution system

The use of technology is becoming more and more popular in all aspects of the business world. One area where technology has made a huge impact is in the distribution system. This is a brief overview of some technologies that can improve your company’s distribution channels.

The cloud

The cloud is a term that is becoming popular in all aspects of business. Most people are familiar with the name for its use in technology and even the internet. The cloud stores data securely and remotely, which allows it to be accessed from anywhere. In the distribution world, this means that you can easily access your company’s products and data from anywhere when needed. Customers can also access their orders and information from any location.

Digital Assistants

Digital assistants are becoming more popular among distributors because it allows your customers to interact with your products in a new way and opens up a whole new market. Digital assistants, such as Siri, Alexa, and Google Home allow your customers to ask questions about your products within certain categories. This technology makes it easier for customers to search for the information they need and creates convenience for both the distributor and the consumer.

WMS/TMS

WMS/TMS is an acronym that stands for Warehouse Management System and Transportation Management System. This type of technology helps companies manage their storage, shipping, holdings, and inventory while also keeping a record of all of these things in one place. Using this type of technology makes it easier for distributors to see what they have on hand and where they need to send products or get more when needed.

Machine learning/AI

Machine learning is a type of technology that allows computers to learn on their own. By using this technology, a distributor can analyze the market data they have, determine which markets are doing well and what is missing to improve their system. This type of data helps the distributor continue growing and increasing the reach of their company.

In the time long past, a product distribution system only consisted of a product’s packaging. There was no way to track that the product had been delivered as it was not possible to use information technology at that time. Today, there is a wide range of IT solutions available for companies who need to maintain order in their business and organize their inventory. However, most companies do not have a clear idea of how to set up an effective product distribution system using IT technologies properly. Hopefully, this article has provided the reader with different examples of how to use IT technologies in your business, why to use them, and how these technologies could improve product distribution.

Conclusion

As technology advances, it has improved accuracy, detail, capability, speed, and more. Therefore, distributors can continue implementing effective systems for reducing lead times, inventories, and associated costs.

As you consider opting for a particular supply chain technology, consider some other important things like the learning curve since training your distribution team on new technologies might be time-consuming. Finally, opt for the most valuable and effective technology for reduced costs and efficiency.


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About the author

Shelly

Shelly is an avid reader, and the love of reading takes her to content writing eventually. She loves writing on various topics.

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