The Distribution Channel

The Distribution Channel

Ever wondered how it feels to walk in burning heat, run like a child when it rains or sip on to a cutting when it’s freezing. It was fun when papa paid for it but now is the time to enter the professional world. Even the big honchos had to slog it out once but now see where they are. From advertizing to marketing, finance to operations there is one thing which has always been common “SALES”.

In a country like India with more than 1.4 billion people running the race to be the first in population lets think about the enormous distribution channel. Highways, cemented roads, kuccha and pucca rasta, galis nukads it’s all here. We’ve seen the malls and the D-Marts, general stores to the wholesale markets, small shops to department stores and finally the most important kirana walas and pan bidi shops. These all have become a very important part of the channel.

FMCG Companies, Telecom operators, Financial Institutions all follow a strict distribution network. It has employed a huge number of people through distributors, wholesalers, retailers and salesmen. Every company appoints a distributor for every area who is well versed with the particular vicinity. This would help in moving the cycle faster. The distributor maintains good relations so as to keep the company as well as the customer happy. He is just another middleman but very powerful. A distributor needs nothing more than a few salesmen, a couple of computers and a NOTE COUNTING MACHINE. Yes it does sound fancy but the work is extremely difficult. Maintaining stock, keeping accounts, supplying the order and most importantly collection. Here is why a distributor appoints salesmen and wholesalers. Salesmen cover half the area and the other half is done by the wholesaler. The wholesaler helps in a quicker turnover with cash on delivery while a retailer always will seek a week credit. Salesmen are quick in their feet and efficient enough to notice what the competitor is up to. From margins to credit period all is well glared at. The distributor works on commission basis while the salesmen are on the payroll of the distributor. Even the company throws targets on distributors.

The sector is never expected to go down. It will always see a rise. The way the economy is rising, demands are increasing the sector will always see growth. It will always be one of the most important employment generators. Whoever wants to make it big will always have to be a part of this channel.

HUL and P&G go to IIM’s for campus placements. They select students to be salesmen at either dharavi or maybe in a rural area. This is one of the roads to be a brand manager.

Look at the dabbawalas they have the most efficient network. From picking up a small box to delivering it back home. Either school or office it works the best. There is much to learn.

“Distribution Channel”, it does not even sound glamorous so the ones who are ready to slog and take success and learning whenever it comes this is the place to be.