Optimizing your distribution channels for maximum impact
Most products and services can be offered and sold to potential clients via alternative distribution channels throughout the whole supply chain. These channels include direct sales, such as sales by the company’s manufacturing plant or sales organization to the end user, and indirect sales, via specialized trading companies based in Europe or overseas, agents, or distributors. Also, combinations of multiple channels on an exclusive or non-exclusive basis, can sometimes prove to be the best and safest option.
Examples of decisive factors when choosing the most optimal channel in, for example, the overseas sales of paper and paperboard solutions could be: client purchasing preferences, lead times, sustainability and safety requirements needed for local storage, shipment options and costs, payment risk levels, available credit insurance, local maximum truckload levels, available import licenses, expected sales volumes, technical complexity, special services by distributors, available local direct or indirect sales staff, etc. The strengths and specialization of a partner trading company can also be of influence.
Building resilient sales channels to navigate fluctuations and sustain growth
Last but not least, your sales targets and expectations for a specific product or country/region also play a decisive role. Together, we can analyze the options, make a SWOT analysis of your sales organization and market position, determine the best option(s), and develop and implement an action plan. For example, in the paper and cartonboard/packaging industry, it is important to use sales channels that can handle changing sales volumes and product portfolio when supplying non-European markets. The ability to implement price increases or reductions effectively and on time is a challenge for many, which calls for a flexible sales organization and excellent client relationships. Here, we also see the importance of a creative, highly professional sales presence.