Distribution in one of the most important areas of a company, so the product can be delivery to the costumer and the company remains working

1. Distribution
Concept, Importance, Challenges
and Its Modalities
WHAT IS DISTRIBUTION
Distribution is one of the main areas of an
enterprise, as it is through it that the product reaches the projected destination,
that is, the consumer.
Distribution is an essential activity for the success of any company that produces
or markets products. Appropriate
Flowchart of Distribution activities
No Yes
Stock
Expedition
Correct?
Transport
Quality Control

2. The logistics of production is made from the number of orders, received, which
are removed from stock, go to the Shipping Sector, which will take care of the
necessary treatments to finally forward to transport, which will deliver to the
customer.
.
Importance of distribution
Distribution is important for a number of reasons, including:
 Ensure product availability: Distribution is responsible for getting products
to customers, so they can purchase them when they need them. And, this
is essential for the success of sales and the Company. For this, it must be
done with quality, meeting the promised deadline; and readiness of
delivery, to customer satisfaction, which will imply the success of the
Company's sales as well.
 Reduce costs: An effective distribution can help reduce logistics costs, with
rework and improvisation, as a good job alone does or can increase the
company's profitability.
 Improve customer service: Efficient distribution can help improve customer
service by ensuring that orders are fulfilled on time and with proper
conditions and thereby build customer loyalty, as well as attract new
customers.
Distribution Challenges
Distribution faces a number of challenges, including:
 Rising costs: Transportation and storage costs are increasing, which puts
pressure on businesses to find ways to reduce costs without compromising
on service level.
 Global competition: Businesses are competing in a global market, which
requires them to develop efficient and competitive distribution strategies.
 E-commerce Growth: E-commerce is growing rapidly, which requires
businesses to adapt to new forms of distribution.
STRATEGIES
One of the main strategies for Task Rationalization, Cost Reduction, Task
Rationalization and Quality Improvement and also get ahead of the competition,
it is essential that companies make use of automation, which is nothing more than
making use of Technology to streamline tasks and reduce costs and, therefore,
increasing productivity and profitability.

3. Investing in Technology will be able to optimize from the registration and customer
part, product control, inventory control to the moment of delivery, ensuring quality
and pre-established deadlines.
To overcome these challenges, it is important that companies make use of
automation, which is nothing more than making use of Technology to streamline
tasks and reduce costs and, therefore, increasing productivity and profitability.
Investing in Technology will be able to optimize from the registration and customer
part, product control, inventory control to the moment of delivery, ensuring quality
and pre-established deadlines.
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DISTRIBUTION MODALITIES AND AREAS:
 Direct distribution: The company sells its products directly to consumers,
without intermediaries.
 Indirect distribution: The company sells its products through intermediaries
such as retailers or wholesalers.
 Selective distribution: The company limits the number of intermediaries
that sell its products.
 Exclusive distribution: The company grants a single intermediary the
exclusive right to sell its products in a certain area.
The right choice of distribution modality is important for the success of any
company. Businesses should consider factors such as the type of product, the
target market, and the company's goals when developing their distribution
strategy.
Direct Distribution
Direct Distribution is the marketing process that occurs without the participation of
another legal entity (to buy and resell), and can be carried out by the following means:
Personal selling occurs when the manufacturing company, through its salespeople, sells
the product directly to its end customers.
Direct marketing occurs when the manufacturing company communicates and/or sells
products/services without the use of marketing intermediaries (indirect sales/distribution
channels or non-personal communication channels).
Telemarketing, which is selling through phone calls;
Catalogue sales and Internet sales

4. Indirect Distribution is characterized by the use of wholesalers and retailers in the
distribution system of goods.
If the company opts for Indirect Distribution, it can be of three types:
 Intensive;
 Selective;
 Exclusive.
Intensive Distribution
It occurs when the company's primary goal is to get its products into as many outlets as
possible.
The only criteria to be considered in the selection of these POS's are credit analysis and
logistics cost,
Generally, this type of distribution is adopted when working with convenience goods, that
is, those that the consumer buys frequently and with minimal effort (processed foods,
soap, newspaper, etc.).
Selective Distribution
It occurs when there is a selection of products, based on some criteria such as their
image and positioning, which can be branded clothes, or goods with low unit value.
In these cases, the point of sale must meet some requirements, which can be:
 Technical Assistance;
 Qualified Sellers;
 Streamlined Layout (few competitors);
 Parking, etc.
It is necessary to adopt a market reserve, preventing competition from intensifying,
causing a drop in the average volume of sales per store or generating a price war
between them.
This type of distribution is recommended when manufacturing goods of comparative
purchase, that is, those that during the purchase process are compared in terms of
suitability, quality, price, and differentials, such as: used or popular cars, furniture,
appliances, clothing, etc.
Exclusive Distribution
Exclusive Distribution is adopted when the image of the product must be preserved as
much as possible.
The selection criteria are more demanding and the reseller must represent exactly the
image that the supplier company intends to have in the market.
This type of distribution should be adopted when manufacturing specialty goods, that is,
those that do not involve comparisons, due to their unique characteristics that lead their
future consumers to desire them to the point of striving to have them.
As an example, we have some car models, some planned furniture stores, clothing
brands, some eyewear brands, etc.
Some goods of comparative purchase, with a high unit value, can also be considered in
the Exclusive Distribution (popular cars, for example).