We are manufacturer of durable goods and operating business since last thirty years. Our firm business model based on selling through few exclusive distributors. They have gained exclusive distribution deals to achieve wide coverage in their geographic. Overtime the distributor tend to be uncooperative, not customer oriented, and selective in their distribution strategies. We are considering improving our business model by reducing the echelons in the distribution channel and opt for modern retailing concepts. What steps should we taken to improve or echelons performances?
Jul 28, 2018
My manufacturing company has 11 final products. All products have four categories based on sizes. The entire system cannot see the real end-demand. Half of the company’s customers are distributors and not real customers. So the company has to depend on history based forecasts. This results in obvious sales-forecast mismatch. In that scenario how to minimize stock-outs and maximize customer service levels with least network inventory?