Sales and Distribution Management Strategies
Functions of a Distributor
Inventory Management and Warehousing: The distributor purchases products in bulk from manufacturers and holds the inventory in their own warehouses. This function ensures products are consistently available to retailers, balancing supply with fluctuating market demand and reducing the storage burden on the manufacturer.
Logistics and Transportation: They manage the physical movement of goods, organizing transportation from the manufacturer to their warehouse, and then to
Read MoreScaling Success: Growth Strategies for Entrepreneurs
Defining Growth in Entrepreneurship
In the context of an entrepreneurial venture, Growth is defined as the sustained expansion of a company’s operations, revenue, market share, customer base, and overall organizational capacity over time.
It signifies the successful transition from the initial startup phase (focused on survival and product-market fit) to a more mature phase focused on scalability and sustainable profitability.
Key Metrics for Measuring Growth
Growth can be measured using various metrics,
Read MoreOrganizational Environment, Culture & Leadership in Global Business
Organizational Environment
Internal Environment – Inside the Company
All internal elements are interconnected and influence how efficiently the company works. These are factors the company can directly control:
- Mission: Defines the company’s purpose and direction.
- Management and Culture: Leadership style, values, communication, and work atmosphere.
- Structure: How the company is organized (departments, hierarchy, coordination).
- Resources: Human, financial, physical, and informational resources.
- Systems
Inventory & Logistics Glossary: Essential Supply Chain Terms
A
ABC Analysis
Assigns items to groups (A, B, C) based on value and importance.
Example: A = laptops, B = keyboards, C = mouse pads.
Accumulation
Receiving goods from multiple sources.
Example: A DC receives shipments from 10 factories.
Activity-Based Costing (ABC)
Assigns cost based on activities, not departments.
Example: Shipping-heavy customers show higher cost-to-serve.
Allocation
Matching inventory to customer orders.
Example: DC allocates 50 units to a customer order.
Anticipatory Stock
Inventory held
Read MoreCorporate Finance: Leverage, Capital Structure, and Investment Appraisal
1. Operational Leverage
Operational leverage refers to the degree to which a firm’s costs are fixed rather than variable. It measures the sensitivity of operating income (EBIT) to changes in sales revenue, given that fixed costs do not change with sales volume in the short run.
Explanation
Fixed vs. Variable Costs: In any business, costs can be divided into fixed costs (such as rent, salaries, machinery depreciation) and variable costs (like raw materials, direct labor that fluctuates with production
Read MoreEssential Marketing Concepts: Mix, PLC, and Consumer Goods Types
Essential Marketing Concepts and Definitions
Consumer Goods Classification
- Convenience Goods: Products ready to be purchased immediately.
- Sporadic Purchase Goods: These goods require more planning and thought during the purchasing process by consumers (e.g., electronics, furniture).
- Specialty Goods: This category is composed of goods that are deemed luxuries.
The Promotion Mix
- Advertising: A paid promotion method where a sponsor calls for public attention through paid announcements (e.g., TV, newspapers)