High-performing businesses understand what their customers want, and they know how to deliver solutions that customers will buy, as well as where and how they want to buy. Success ultimately depends upon the effectiveness and reach of go-to-market strategies. Distribution channel optimization is therefore a critical ingredient to sustaining growth and competitiveness over time.
Distribution Channel Optimization Issues and Challenges
Mistakes in the distribution chain can directly affect the top and bottom line in the short term and the industry’s competitive dynamic in the long term.
If mismanaged, distributor relationships can be a drain on a supplier’s resources, rather than an asset for long-term growth:
- Poor-fit partners, misaligned objectives or incentives, and other conflicts can derail relationships before they have an opportunity to succeed.
- Failure to reach end users or to communicate with those end users through distributors effectively leaves the door open for competitors to supplant your business.
An additional key consideration for businesses today is how to integrate Digital into the supply chain, distribution and retail strategies. Understanding this trend, and its context within larger global Mega Trends, has become a key source of survival, success, and competitive advantage.
Our Value Proposition
Profitable distribution channel optimization depends on effective channel and partner evaluation, selection, and management. We help clients determine where their customers want to buy, and engage and motivate high-value partners; recognize and address declining relationships; and continually reevaluate all partners’ abilities to reach their highest-value customer segments. In addition, we help our clients develop and implement compelling supply chain, distribution and retail strategies integrating Digital solutions, leveraging our global research focused on identifying and sharing Digital Best Practices.
Our Consulting Approach
Frost & Sullivan’s start-to-finish approach to Distribution Channel Optimization can help you:
- Profile your company’s current go-to-market strategy
- Compare how your customers prefer to buy with how you currently go to market
- Identify growth opportunities that could be exploited with new partnerships
- Establish collaborative relationships with new and existing channel partners