For any organisation having a distributor community, managing and tracking the sales forecast and forecast variance is perhaps the biggest challenge. This is especially true for non-exclusive distributors where the sell-to information is clear but the sell-through information is normally absent. Distributors have their own systems and also other products that they carry, as such they rarely adhere to any specific principal demands nor do they provide their customer information to the principal. This is a common practice, but it poses a long standing problem of not giving the principals visibility of actual product quantity sold. This then lends itself to the lack of proper and accurate forecast when products are over-stocked and unsold.
Whilst distributors cannot be directly instructed, they can however be incentivised, encouraged, engaged and supported in a manner that sharing information becomes part and parcel of that collaboration. Similar to effective sales, a tighter engagement with distributors will provide the organisation with better control and management of the collaboration.
Seeing, understanding and appreciating the challenges allows organisations like ours to develop and deliver effective solutions that help address these pains.
Do get in touch with us if you are facing these challenges and allow us to work with you to help resolve them. Click here to get someone to contact you.