Logistics distribution is a vital step in the supply chain as it involves transporting materials from the manufacturer to the distributor. From there, the goods can reach the customer. Still, a lot has to be coordinated within the distribution network that entrepreneurs and small businesses don’t know.

Fortunately, this article will provide a guide to you to create a holistic distribution strategy that will set clear expectations, boundaries, marketing channels, and consulting intermediaries to get the most profit from your network.

Setting Expectations:

Define your expectations clearly to make sure that you are on track. You also need to understand the components that influence this distribution network to optimize the channels. To do that, you need first to see how your current strategies affect a given product’s supply chain. Each step within the distribution network is dependent on the overall design, starting from the manufacturing facility to the retailer. Once you’ve identified these expectations, you can proceed with other steps.

Evaluating Each Channel:

Identify each channel that your distribution strategy affects and create a spreadsheet with each marketing intermediary and the plan on how you’re selling the product. Consider the intermediary you prefer to consult. Brokers and agents can help you in this regard, but they charge fees for this job. Another option you can go about is using wholesalers and bulk purchasers, who’ll then sell your product to retailers. Contractors can also get your product and sell it further with their resources. Evaluate the pros and cons of each intermediary and then plan on establishing a relationship with them. Ask detailed questions regarding the services they’re offering, potential weaknesses, and strengths.

​Narrow Down Logistics Distribution Channels:

The last step in creating an effective logistics distribution strategy is to narrow down the channels which will be more profitable for your product. Select a channel that generates more revenue. Whether you plan on moving forward through a single medium or multiple ones, they should offer you the highest returns on investment. 

These distribution channels can be grouped into the following:

• Intensive Distribution
• Selective Distribution
• Exclusive Distribution

Intensive distribution involves using many intermediaries, whereas selective uses only one. Both can handle many products from different retailers. Exclusive distribution ensures that intermediaries carry only specific products.

You need to partner with the best logistics providers available whenever you’re creating a distribution strategy. Luckily, that’s where Gillson Solutions comes in. We offer a comprehensive logistics operation for your business. We understand how important a distribution channel is for a manufacturer. And we help expand your product outreach by lending our very professional and safe logistics solutions.