Sales & Distribution Sales & Distribution

Intro to Sales Management Intro to Sales Management

• Understand Concept of Sales ManagementUnderstand Concept of Sales Management

• Evolution of Sales ManagementEvolution of Sales Management

• Importance & Functions of Sales ManagementImportance & Functions of Sales Management

• Understand Process of Sales ManagementUnderstand Process of Sales Management

Evolution of Personal Selling Evolution of Personal Selling

• PersuasionPersuasion

• NegotiationNegotiation

• Consultative SellingConsultative Selling

• Business ManagementBusiness Management

• Partnership StrategiesPartnership Strategies

Marketing ConceptsMarketing Concepts

• Production ConceptsProduction Concepts• Product ConceptProduct Concept• Concept SellingConcept Selling• Marketing ConceptMarketing Concept• Societal ConceptSocietal Concept• Sales Oriented Management focuses on Selling NeedsSales Oriented Management focuses on Selling Needs• Marketing Oriented Management focuses on Marketing Oriented Management focuses on

Customer needsCustomer needs

Nature and Role of Sales ManagementNature and Role of Sales Management

• Determine Sales force Objectives & GoalsDetermine Sales force Objectives & Goals

• Decide on Sales Organization, Size, Territory & Decide on Sales Organization, Size, Territory & QuotaQuota

• Sales Forecasting & BudgetingSales Forecasting & Budgeting

• Selection,Recruitment & TrainingSelection,Recruitment & Training

• Motivation and Leading Sales ForceMotivation and Leading Sales Force

• Finalize Compensation Plan,Checks & BalancesFinalize Compensation Plan,Checks & Balances

• Career Growth plans/Building Career Growth plans/Building Relationships/Strategies with Major AccountsRelationships/Strategies with Major Accounts

Types of Selling Types of Selling

• Consumer /RetailConsumer /Retail

• IndustrialIndustrial

• Services SellingServices Selling

Types of SellingTypes of Selling

• Inside Order TakerInside Order Taker• Delivery Sales peopleDelivery Sales people• Outside Order takerOutside Order taker• Missionary Sales PeopleMissionary Sales People• New Business salesNew Business sales• Organisational Sales Organisational Sales • Consumer SalesConsumer Sales• Technical supportTechnical support• Merchandisers(Retail & Whole sale selling)Merchandisers(Retail & Whole sale selling)

SellingSelling

• Emphasis on ProductEmphasis on Product• Product firstProduct first• Sales Volume orientedSales Volume oriented• Short termShort term• Needs of SellerNeeds of Seller• Business is Good producingBusiness is Good producing• Emphasis on Technology / CostsEmphasis on Technology / Costs• Departments working watertight compartmentsDepartments working watertight compartments• Costs determines the priceCosts determines the price• Customer is the last linkCustomer is the last link

Selling ProcessSelling Process

• Leads /Referrals/ Orphans (Sales Persons Left) / Customers Leads /Referrals/ Orphans (Sales Persons Left) / Customers /Find Company records/Find Company records

• ProspectingProspecting• Customer ContactCustomer Contact• Presentations Presentations • POC / DemonstrationsPOC / Demonstrations• Objections HandlingObjections Handling• Closing Closing • Follow upFollow up• New EnquiriesNew Enquiries

MarketingMarketing

• Emphasis on Customer needsEmphasis on Customer needs• Needs are first than the productizationNeeds are first than the productization• Profit OrientedProfit Oriented• Long term/Tomorrow’s marketsLong term/Tomorrow’s markets• Customer satisfaction as business processCustomer satisfaction as business process• Innovation with superior technologyInnovation with superior technology• All departments operate as integrated unitAll departments operate as integrated unit• Consumers determine the price / costsConsumers determine the price / costs• Customer is beginning of BusinessCustomer is beginning of Business

5 P’s of Marketing5 P’s of Marketing

• Market MixMarket Mix

• ProductProduct

• PricePrice

• PlacePlace

• PromotionPromotion

• PackagingPackaging

• Sales pulls the CustomersSales pulls the Customers

• Eg Marketing LG/Compaq/Federal ExpressEg Marketing LG/Compaq/Federal Express

Sales Management ProcessSales Management Process

• Formulation of Strategic Sales Management Formulation of Strategic Sales Management ProgramProgram

• Implementation of the Strategic Management Implementation of the Strategic Management ProgramProgram

• Evaluation & Control of Sales Management Evaluation & Control of Sales Management

Formulation Of Strategic ProgramFormulation Of Strategic Program

• How Sales can be dovetailed into Company’s How Sales can be dovetailed into Company’s vision & Marketing strategyvision & Marketing strategy

• Way to approach the ProspectsWay to approach the Prospects

• Organise the Sales ForceOrganise the Sales Force

• Level the performance of Sales forceLevel the performance of Sales force

• Deployment of Sales Force based on Demand Deployment of Sales Force based on Demand Forecast of the business needsForecast of the business needs

Implementation of StrategyImplementation of Strategy

• External EnvironmentExternal Environment

• Potential Customers/Competition/Legal & Political Potential Customers/Competition/Legal & Political Environment/Tech environment/Natural Environment/Tech environment/Natural resource/Social & Cultural environmentresource/Social & Cultural environment

• Internal Environment:Internal Environment:

• Objectives/Vision/Mission/Human Objectives/Vision/Mission/Human Resources/Financial Resources/Capacity & Resources/Financial Resources/Capacity & Production Processes/R& D /InnovationProduction Processes/R& D /Innovation

Marketing Strategy/Sales Management Marketing Strategy/Sales Management FunctionsFunctions

• Product & Product lines/Pricing Product & Product lines/Pricing Policy/Distribution Strategy/Ad & Sales Policy/Distribution Strategy/Ad & Sales PromosPromos

• Sales Management Functions:Sales Management Functions:• Account Management /Sales force Org/Sales Account Management /Sales force Org/Sales

Planning/Forecasting/QuotaPlanning/Forecasting/Quota• Sales force Deployment/Territory design & Sales force Deployment/Territory design &

Route planning/SupervisionRoute planning/Supervision

Implementation of Strategic Sales Implementation of Strategic Sales Management ProgramManagement Program

• SM Fns- Determine Sales Performance-ResultsSM Fns- Determine Sales Performance-Results• Supervision/Job Descriptions/Sales Supervision/Job Descriptions/Sales

Volume/Quota/Profitability of Customer/Sales Volume/Quota/Profitability of Customer/Sales Reports/Ethical practicesReports/Ethical practices

• Motivation & Compensation/Reward/Sales Motivation & Compensation/Reward/Sales Training/RecruitmentTraining/Recruitment

• Aptitude/Skills /Motivational levelsAptitude/Skills /Motivational levels• Evaluation & Control of Strategic Sales Management Evaluation & Control of Strategic Sales Management

ProgramProgram

Emerging Trends in Sales ManagementEmerging Trends in Sales Management

• TechnologyTechnology

• Customer OrientationCustomer Orientation

• Global & Ethical issuesGlobal & Ethical issues

• New Selling TechniquesNew Selling Techniques

• DiversityDiversity

• Relationship SellingRelationship Selling

Selling Skills & Strategies Selling Skills & Strategies

• Understand different buying & Selling stylesUnderstand different buying & Selling styles

• Understand & Internalize the selling skillsUnderstand & Internalize the selling skills

• Comprehend the process of Building Communication Comprehend the process of Building Communication skillsskills

• Learn to improve listening skillsLearn to improve listening skills

• Conflict Management and Resolution skillsConflict Management and Resolution skills

• Learn to bargain & win the Sale dealLearn to bargain & win the Sale deal

• Understand problem solving skillsUnderstand problem solving skills

Selling TypesSelling TypesConcern For Customer (Y AXIS)Concern For Customer (Y AXIS)

People Oriented Problem Solving Oriented People Oriented Problem Solving Oriented

Sales Technique Oriented Sales Technique Oriented

Take it or Leave it Push the ProductOrientedTake it or Leave it Push the ProductOriented

(Concern for Sale) X AXIS (Concern for Sale) X AXIS

Sales task & FunctionsSales task & Functions

• Hunting & farming( New Business Hunting & farming( New Business Development/Maintenance & increase the Share of Development/Maintenance & increase the Share of the walletthe wallet

• Selling Skills:Selling Skills:

• Good Sales Person : Honest/ Loses sale Good Sales Person : Honest/ Loses sale graciously/admits mistakes/Possesses problem graciously/admits mistakes/Possesses problem solving skills/Friendly but solving skills/Friendly but professional/Adaptable/Knows my business/Well professional/Adaptable/Knows my business/Well prepared/Patientprepared/Patient

Selling SkillsSelling Skills

• Bad : Does not follow up / walks in without Bad : Does not follow up / walks in without appointment/puts down competitors appointment/puts down competitors products/poor listener/lousy presentations/fails products/poor listener/lousy presentations/fails to ask needs/lacks product knowledge/wastes to ask needs/lacks product knowledge/wastes timetime

Communication Skills Communication Skills

• Relationship is long term where there is Relationship is long term where there is mutual trustmutual trust

• Truth of words communicated by Sales personTruth of words communicated by Sales person

• Predictability of Predictability of action/Comeptency(Ability/knowledge/resoursaction/Comeptency(Ability/knowledge/resourses)es)

• Intent or Empathy/LikeabilityIntent or Empathy/Likeability

Communications ProcessCommunications Process

• Intended message / Encoding/Sent messageIntended message / Encoding/Sent message

• ChannelChannel

• Received message/ decoding/perceived Received message/ decoding/perceived messagemessage

• FeedbackFeedback

Non Verbal CommunicationsNon Verbal Communications

• Managing Body LanguageManaging Body Language

• Personal AppearancePersonal Appearance

• PosturePosture

• GestureGesture

• Facial ExpressionsFacial Expressions

• Eye ContactEye Contact

• Space DistancingSpace Distancing

LISTENING SKILLS(2:1)LISTENING SKILLS(2:1)

• AttendanceAttendance

• InterpretationInterpretation

• RemembranceRemembrance

• EvaluationsEvaluations

• Response actions(Listening process)Response actions(Listening process)

• Levels of ListeningLevels of Listening

• Feedback (Formal & Informal) / Paraphrasing Feedback (Formal & Informal) / Paraphrasing /Clarifications/Empathetic listening/Active listening/Clarifications/Empathetic listening/Active listening

Selling of Services $ 81 billion Selling of Services $ 81 billion businessbusiness

• Tangible GoodsTangible Goods• Tangible Goods + ServicesTangible Goods + Services• Hybrid (Restaurants/Food Services)Hybrid (Restaurants/Food Services)• Major Services /Minor Goods(Airlines Major Services /Minor Goods(Airlines

/Hotel/Tourism)/Hotel/Tourism)• Pure Services-Psychological /Medicine/Baby Pure Services-Psychological /Medicine/Baby

Sitting/Teaching/Sitting/Teaching/ Masseur)Masseur)• Government-Courts/Hospitals/Police/Fire/Schools/Government-Courts/Hospitals/Police/Fire/Schools/

Military etc)Military etc)• Retail –Cashier / SalesRetail –Cashier / Sales

Factors affecting serviceabilityFactors affecting serviceability

• PlacePlace

• PeoplePeople

• EquipmentEquipment

• Communication MaterialCommunication Material

• SymbolsSymbols

• PricePrice

• AvailabilityAvailability

• PerishabilityPerishability

Servicing SalesServicing Sales

• Differential PricingDifferential Pricing• ComplementaryComplementary• Reservation systemsReservation systems• Holistic Marketing servicesHolistic Marketing services• Pricing/Inconvenience/Core Service failurePricing/Inconvenience/Core Service failure• Service Encounter failureService Encounter failure• Response to service failureResponse to service failure• CompetitionCompetition• Ethical ProblemEthical Problem• Involuntary switchingInvoluntary switching

Managing Service qualityManaging Service quality

• ReliabilityReliability• ResponsivenessResponsiveness• AssuranceAssurance• EmpathyEmpathy• TangiblesTangibles• Set Quality ManagementSet Quality Management• Strategic ConceptStrategic Concept• Top MANAGEMENT CommitmentTop MANAGEMENT Commitment• High StandardsHigh Standards

Recommendions for Service Recommendions for Service ImprovementImprovement

• ListeningListening• ReliabilityReliability• Basic servicesBasic services• Service DesignService Design• RecoveryRecovery• Surprising CustomerSurprising Customer• Fair PlayFair Play• TeamworkTeamwork• Employee ResearchEmployee Research• Servant LeadershipServant Leadership

Managing ServicesManaging Services

• Differentiate ServicesDifferentiate Services

• Establishing Brand dimensionEstablishing Brand dimension

• StrategyStrategy

• Customer Services needsCustomer Services needs

• Prevention servicesPrevention services

• BreakdownBreakdown

• EmergencyEmergency

MISMIS

• EISEIS

• Sales Information SystemsSales Information Systems

• Automation in EIS / MISAutomation in EIS / MIS

• Industry Software Applications for automation Industry Software Applications for automation

• CRM (Siebel/Oracle Applications/Talisma)CRM (Siebel/Oracle Applications/Talisma)

• ERP( SAP/Peoplesoft/Oracle Business Suite)ERP( SAP/Peoplesoft/Oracle Business Suite)

• SCM( Manugistics/ ??)SCM( Manugistics/ ??)

EISEIS

• Sr Level Executive Information SystemsSr Level Executive Information Systems• Key Sales parameters by Region/By Product/By Profit Key Sales parameters by Region/By Product/By Profit

Margin/Volume)/major wins, Competitive Intelligence, New Customer Margin/Volume)/major wins, Competitive Intelligence, New Customer acquisitionsacquisitions

• Key Financial parameters P&L Cash Flow, PE ratio, Creditors, Debtors, Key Financial parameters P&L Cash Flow, PE ratio, Creditors, Debtors, Capital investments, ROI Capital investments, ROI

• Manufacturing-Key Production numbers BY Product lines, timelines, Manufacturing-Key Production numbers BY Product lines, timelines, plans, Quality parameters (Rejections), Planned breakdownplans, Quality parameters (Rejections), Planned breakdown

• HR-Recruitments, Performance bonuses, Reviews, Training and HR-Recruitments, Performance bonuses, Reviews, Training and relocations ,Appraisals / Exitsrelocations ,Appraisals / Exits

• Customer Care- QoS levels, Customer satisfaction mechanisms & Customer Care- QoS levels, Customer satisfaction mechanisms & redressal, Churn, Service complains & historyredressal, Churn, Service complains & history

Sales Information SystemSales Information SystemSales ForecastingSales ForecastingCRM TechniquesCRM TechniquesSales per Region, Territory, Products, Volume, Margins, ExecutiveSales per Region, Territory, Products, Volume, Margins, ExecutiveNew Products / New Customer reportsNew Products / New Customer reportsOpportunities loss & reasons for major lossOpportunities loss & reasons for major lossSales & Technical training programsSales & Technical training programsCredit limits /Collections details/Days Sales OutsatndingsCredit limits /Collections details/Days Sales OutsatndingsSales reviewSales reviewCalls /day/Region/ExecutiveCalls /day/Region/ExecutiveKey Projects reviewKey Projects reviewCompetitive LandscapeCompetitive LandscapeUpselling /Cross selling opportunties in an accountUpselling /Cross selling opportunties in an accountSales promos / IncentivesSales promos / IncentivesDealer proramsDealer prorams

Sales Forecasting ProcessSales Forecasting Process• Follow the closed loop process as belowFollow the closed loop process as below• Develop a Forecast SystemDevelop a Forecast System• Select Forecast Analysis MethodSelect Forecast Analysis Method• Comprehend Forecast ProcedureComprehend Forecast Procedure• Collect/Collate/Analyze dataCollect/Collate/Analyze data• Present assumptions about dataPresent assumptions about data• Make & Finalize forecastMake & Finalize forecast• Evaluate actual Performance against forecastEvaluate actual Performance against forecast• Forecast ObjectivesForecast Objectives• Determine Dependant & Independent variables Determine Dependant & Independent variables

Approach to Sales ForecastingApproach to Sales Forecasting

• General Environmental ForecastGeneral Environmental Forecast

• Industry Sales ForecastIndustry Sales Forecast

• Company Sales ForecastCompany Sales Forecast

• Sales forecast for the Product & Services linesSales forecast for the Product & Services lines

• Individual Products & Services linesIndividual Products & Services lines

Forecasting MethodsForecasting Methods• Qualitative MethodsQualitative Methods• Expert’s OpinionExpert’s Opinion• Survey / Buyers Expectations(AC Nielson)Survey / Buyers Expectations(AC Nielson)• Sales Force CompositeSales Force Composite• Delphi Technique(Group expert opinion in 3 rounds)(Time Delphi Technique(Group expert opinion in 3 rounds)(Time

Series Projections/ Regression techniques)Series Projections/ Regression techniques)• Historical Analogy methodHistorical Analogy method• Statistical Analytical Methods( Log Winters/ Corelation Statistical Analytical Methods( Log Winters/ Corelation

/Regression analysis)(SPSS / SAS tools)/Regression analysis)(SPSS / SAS tools)• Econometric TechniquesEconometric Techniques• Factors affecting forecast Factors affecting forecast

Sales Quota ManagementSales Quota Management

• Importance of Sales QuotaImportance of Sales Quota• Principles of quota settingPrinciples of quota setting• Define annual objectives Sales / Organisation/ Define annual objectives Sales / Organisation/

Additional to SalesAdditional to Sales• Types of Sales quotaTypes of Sales quota• Sales Volume quotaSales Volume quota• Sales budget quotaSales budget quota• Sales activity quotaSales activity quota• CombinationCombination

Sales Budgeting & QuotaSales Budgeting & Quota

• Based on the Country Forecast Regional, Based on the Country Forecast Regional, Territorial, AM wise forecasts are carried outTerritorial, AM wise forecasts are carried out

• Based on the forecast Budgets are allocated for Based on the forecast Budgets are allocated for Marketing, Sales Organization expansionMarketing, Sales Organization expansion

• These budgets are to be monitored on These budgets are to be monitored on daily/weekly/monthly/quarterly/annual basis daily/weekly/monthly/quarterly/annual basis against the forecasts and required reallocations against the forecasts and required reallocations of forecasts/ targets are madeof forecasts/ targets are made

• Sales quota can also be fixed based on the Sales quota can also be fixed based on the product based / Sales based/Activity basedproduct based / Sales based/Activity based

Sales Organisation Sales Organisation • Org Structure with cross functional & support rolesOrg Structure with cross functional & support roles

• Factors influencing structureFactors influencing structure

• Products & Services related factorsProducts & Services related factors

• Organisation related factorsOrganisation related factors

• Market mix (Products/ Local/Global/ Regional Market mix (Products/ Local/Global/ Regional

• External factorsExternal factors

• Top down approach command & control drivenTop down approach command & control driven

• Horizontal & Customer drivenHorizontal & Customer driven

Organisational PrinciplesOrganisational Principles

• Span of Control/ Unity of Command/ Span of Control/ Unity of Command/ Hierarchy of AuthorityHierarchy of Authority

• Stability & ContinuityStability & Continuity

• Coordination & IntegrationCoordination & Integration

• HomogenityHomogenity

• ObjectivityObjectivity

• SpecializationSpecialization

• Centralisation & DecentralisationCentralisation & Decentralisation

Typical Org ChartTypical Org Chart• MD/ ChairmanMD/ Chairman

• Sales/ Finance/Production/Customer Sales/ Finance/Production/Customer Service /Commercial/Legal /IT /HR/R& D– Service /Commercial/Legal /IT /HR/R& D– DirectorsDirectors

• National Sales ManagerNational Sales Manager

• Regional Sales ManagerRegional Sales Manager

• Sales OfficerSales Officer

Org Chart by CustomersOrg Chart by Customers

• Sales DirectorSales Director

• National Sales ManagerNational Sales Manager

• Sales Manager (Industrial Sales)Sales Manager (Industrial Sales)

• Sales Manager( Whole sale)Sales Manager( Whole sale)

• Sales Manager( Retail sales)Sales Manager( Retail sales)

• Key Account SalesKey Account Sales

• Sales Process Automations Sales Process Automations

Associated /Extended Sales OrgAssociated /Extended Sales Org

• Wholesale NetworkWholesale Network

• Retail Dealer NetworkRetail Dealer Network

• Shared Sales force with dealersShared Sales force with dealers

• Telemarketing Sales ForceTelemarketing Sales Force

• TQM / Team based sellingTQM / Team based selling

• No of Sales PeopleNo of Sales People

• AffordabilityAffordability

• IncrementalIncremental

• Workload Method Workload Method

Management of Sales TerritoryManagement of Sales Territory• Global/Local bifurcationsGlobal/Local bifurcations• Countrywise / Statewise/ Citywise /RuralCountrywise / Statewise/ Citywise /Rural• Advantages /DisadvantagesAdvantages /Disadvantages• Intercontinental / Interstate collabrations for key accountsIntercontinental / Interstate collabrations for key accounts• DisadvantagesDisadvantages• Sizing of territory based on Business Potential/sales volumeSizing of territory based on Business Potential/sales volume• New Sales force new territoryNew Sales force new territory• Modify territorial boundaries based on workload / PotentialModify territorial boundaries based on workload / Potential• Optimum route planning /Avoid duplicate travel plans and Optimum route planning /Avoid duplicate travel plans and

target more Businesstarget more Business• Territory based on potential /Geography/Market shareTerritory based on potential /Geography/Market share• 10 Customers per AM on average10 Customers per AM on average

Recruitment & Selection Recruitment & Selection

• Hiring process /Job Qualification/Job Hiring process /Job Qualification/Job descriptiondescription

• Planning / Recruitment /Select /SocializePlanning / Recruitment /Select /Socialize

• Performance= Ability*Motivational Performance= Ability*Motivational

• Strategic Position AnalysisStrategic Position Analysis

• Turnover based recruitmentTurnover based recruitment

• Job AnalysisJob Analysis

Recruitment & SelectionRecruitment & Selection

• Internal Sources/Lateral & upward Internal Sources/Lateral & upward moves/Interns /Summer Traineesmoves/Interns /Summer Trainees

• Employee Referal programEmployee Referal program

• External Sources of recruitment: Web/ads/Job External Sources of recruitment: Web/ads/Job Fairs/Educational & Campus Fairs/Educational & Campus Recruitments/Employment Agencies/Walk Recruitments/Employment Agencies/Walk ins/Networkingins/Networking

• External vs Internal recruitmentsExternal vs Internal recruitments

• Disadvantaged & Protected personsDisadvantaged & Protected persons

Training of Sales PersonnelTraining of Sales Personnel• LocationLocation

• Job Instruction TrainingJob Instruction Training

• Types of TrainingTypes of Training

• Cross Functional TrainingCross Functional Training

• Team trainingTeam training

• Product /Solutions trainingProduct /Solutions training

• One on One or Group TrainingsOne on One or Group Trainings

• Participative TrainingParticipative Training

• Conferences & Seminars/Industry RepresentationsConferences & Seminars/Industry Representations

• Role plays basedRole plays based

Sales Incentives & CompensationsSales Incentives & Compensations• Companywise Salary is broken down on Sales targets Companywise Salary is broken down on Sales targets

based from 50:50 to 90:10 per pointsbased from 50:50 to 90:10 per points• Compensation plan should encourage higher Compensation plan should encourage higher

performanceperformance• Pat on the back/Target based incentives/Critical Pat on the back/Target based incentives/Critical

Project award Project award • Financial/Kind /Travel trips for Financial/Kind /Travel trips for

couples/Commissions/Bonus/ Incentives/ Gifts/ couples/Commissions/Bonus/ Incentives/ Gifts/ Promotions/Recognitions /Fringe benefits/Perks/Sales Promotions/Recognitions /Fringe benefits/Perks/Sales ContestsContests

• Relate rewards to performance/Measure /AppraiseRelate rewards to performance/Measure /Appraise

Sales for evaluation & ControlSales for evaluation & Control

• Activity reports/Barriers/KRA’s /MBO’sActivity reports/Barriers/KRA’s /MBO’s

• Trait basedTrait based

• Outcome based Outcome based

• Behaviour basedBehaviour based

• Evaluation gridEvaluation grid

• Performance appraisal’s & ratingsPerformance appraisal’s & ratings

• Quality & content of reporting Quality & content of reporting

Distribution /Channel ManagementDistribution /Channel Management• Why ???Why ???• Activities of Distribution ChannelsActivities of Distribution Channels• Spatial Discrepancy (Physical distances)Spatial Discrepancy (Physical distances)• Temporal discrepancy(Batch & Continous Temporal discrepancy(Batch & Continous

Manufacturing variance in consumption)Manufacturing variance in consumption)• Need to break bulkNeed to break bulk• AssortmentAssortment• Intermediation(Kirana)Intermediation(Kirana)• Direct Disti control is low /cost efficiency highDirect Disti control is low /cost efficiency high• Indirect disti cost effi good control/low cost effiIndirect disti cost effi good control/low cost effi

Distribution /Channel ManagementDistribution /Channel Management

• Value enhancement through Disti functionValue enhancement through Disti function• Disti strategyDisti strategy• Distributor ObjectivesDistributor Objectives• Channel activities Channel activities • Organizing Channel ActivitiesOrganizing Channel Activities• Policy guidelines of Daily/Monthly/ Policy guidelines of Daily/Monthly/

Quarterly/Annual operations & BusinessQuarterly/Annual operations & Business• Channel ManagementChannel Management• Ex Ante Phase / Ex Poste PhaseEx Ante Phase / Ex Poste Phase• Pharma Disti Pharma Disti

Distribution & Channel structureDistribution & Channel structure• ManufacturerManufacturer• C & F Depot/Super StockistC & F Depot/Super Stockist• StockistStockist• WholesalerWholesaler• Retailer/ChemistsRetailer/Chemists• PatientPatient• Institutional Sales Institutional Sales • Distributor MarginsDistributor Margins• Retail MarginsRetail Margins• Turn over DiscountsTurn over Discounts• Dealer Incentive schemes/Star Bonuses/Dealer Incentive schemes/Star Bonuses/

Customer Oriented Marketing Customer Oriented Marketing ChannelsChannels• Ownership flowOwnership flow• Promotion flowPromotion flow• Negotiation flowNegotiation flow• Financing flowFinancing flow• Risk taking flowRisk taking flow• Ordering flowOrdering flow• Payment flowPayment flow• Conduct cost analysisConduct cost analysis• Comparing Channel design based on Comparing Channel design based on

effectiveness/Efficiency/Equity/Scalability/effectiveness/Efficiency/Equity/Scalability/• FlexibilityFlexibility

Channel Establishment planChannel Establishment plan• Main purpose of Channel /DealerMain purpose of Channel /Dealer• Customer profilesCustomer profiles• Needs & reqment of target market with regards Needs & reqment of target market with regards

to product & servicesto product & services• Analysis of similar existing channels & business Analysis of similar existing channels & business

potential of regionpotential of region• CoverageCoverage• Activity breakupActivity breakup• Costs/Roles /ResponsbilitiesCosts/Roles /Responsbilities• Discounts / IncentivesDiscounts / Incentives• Standards of performance measurementStandards of performance measurement• Reporting mecansisms/Monitoring mecanismReporting mecansisms/Monitoring mecanism• Selection criteria for Channel / dealersSelection criteria for Channel / dealers

Alternate Disti channelsAlternate Disti channels

• Franchising (McDonald/ Jumbo King)Franchising (McDonald/ Jumbo King)

• Direct MarketingDirect Marketing

• Multi Level Marketing (Amway)Multi Level Marketing (Amway)

• TelemarketingTelemarketing

• Internet Marketing Internet Marketing

• E CommerceE Commerce

• M CommerceM Commerce

Modes of Transport for DistiModes of Transport for Disti

• RoadRoad

• RailRail

• AirAir

• WaterWater

• HybridHybrid

• Route PlanningRoute Planning

• Container TrucksContainer Trucks

Terminology of Transport Terminology of Transport • CIFCIF• C & FC & F• Freight to PayFreight to Pay• Cash on delivery Cash on delivery • Customs / Excise/Sales Tax/VATCustoms / Excise/Sales Tax/VAT• OctroiOctroi• Inter State permitsInter State permits• Consignor /Consignee documentsConsignor /Consignee documents• Demurrage chargesDemurrage charges• Types of consignment Types of consignment

(Fragile/Perishable/Toxic/Inflammable/Bulk Cargo)(Fragile/Perishable/Toxic/Inflammable/Bulk Cargo)• Forms of Packaging ( Cartons/ Boxes /Crates/ Forms of Packaging ( Cartons/ Boxes /Crates/

Barrels/Drums/ Pallets/ Cylinders/Reels/RollsBarrels/Drums/ Pallets/ Cylinders/Reels/Rolls

Inventory Control TechniquesInventory Control Techniques• ABC Analysis( Pareto 80:20 principle)ABC Analysis( Pareto 80:20 principle)

• EOQEOQ

• HMLHML

• VED( Vital / Essential / Desirable)VED( Vital / Essential / Desirable)

• SDE (Scarce/Difficult/ Easy)SDE (Scarce/Difficult/ Easy)

• FSNFSN

• GOLF (Government/Ordinary/Local / Foreign)GOLF (Government/Ordinary/Local / Foreign)

• SOS (Seasonal/Off Season)SOS (Seasonal/Off Season)

• Stock accounting (LIFO/FIFO)Stock accounting (LIFO/FIFO)

Warehouse ManagementWarehouse Management

• Why need warehouseWhy need warehouse• Functions of warehouseFunctions of warehouse• Movement/storage & Information Movement/storage & Information

transfertransfer• Storage/Bulk breaking/Consolidation / Storage/Bulk breaking/Consolidation /

Inventory ManagementInventory Management• Transfering/Order picking /selection/ Transfering/Order picking /selection/

shippingshipping• No of warehousesNo of warehouses• Costs of lost sales/Inventory Costs of lost sales/Inventory

costs/Transportation/warehousing costscosts/Transportation/warehousing costs

Warehouse Management Warehouse Management • Centralised /DecentralisedCentralised /Decentralised• Functional/Raw Material/Production/ Functional/Raw Material/Production/

Quarantine/Finished Goods/WIP/ Quarantine/Finished Goods/WIP/ Bonded/RefrigeratedBonded/Refrigerated

• Planned for future/Road /Rail/Water transport accessPlanned for future/Road /Rail/Water transport access• Layouts for quick vehicle turnaround/ In Flow & Layouts for quick vehicle turnaround/ In Flow &

outflow ease /Maintainance Security Straight Flow outflow ease /Maintainance Security Straight Flow throughthrough

• Material identification systems(Bar Material identification systems(Bar Codes/Codifications/Standardisation)Codes/Codifications/Standardisation)

• Receiving & Inspection systemsReceiving & Inspection systems• Storage systems/PreservationStorage systems/Preservation• Issue / receipt of materialsIssue / receipt of materials• Stock verification & recordsStock verification & records• Safety /SecuritySafety /Security

Material Handling equipmentMaterial Handling equipment

• Manual Manual

• Cranes/Gantries/Traveling cranes Cranes/Gantries/Traveling cranes

• ForkliftsForklifts

• PalletsPallets

• TractorsTractors

• Conveyors (Roller/ belt) Conveyors (Roller/ belt)

• Hydraulic Lifts/Electric /Hoists/ Chutes/DocksHydraulic Lifts/Electric /Hoists/ Chutes/Docks

• Vacuum Pressure systemsVacuum Pressure systems

• Maintenance/ Misuse/Economy of use Maintenance/ Misuse/Economy of use

Computers in warehouseComputers in warehouse• CodificationCodification• Networking (LAN / WAN)Networking (LAN / WAN)• Electronic Identification ( Bar Codes)/RFIDElectronic Identification ( Bar Codes)/RFID• EDIEDI• Reports( Quantity/Value/YTD Reports( Quantity/Value/YTD

Consumption/receipts/analysis/lead time / Consumption/receipts/analysis/lead time / exceptions/ suppliers master/pending exceptions/ suppliers master/pending purchases/vendor performance/ave purchases/vendor performance/ave inspection time/transfer time to inspection time/transfer time to inventory/storage/ emergency inventory/storage/ emergency purchases/ICCpurchases/ICC

• Link to ERPLink to ERP

Mgmt of Company owned vehiclesMgmt of Company owned vehicles

• Perk in Sales accountPerk in Sales account

• Average travel allowanceAverage travel allowance

• Maintenance allowanceMaintenance allowance

• Lease Vs Rental Lease Vs Rental

• Ave mileage/safety Ave mileage/safety

• Door delivery/Pick up service Door delivery/Pick up service

Techniques of Mass Disti Techniques of Mass Disti

• ContainerisationContainerisation

• Route planning based on the sales Route planning based on the sales ordersorders

• Multi product delivery vansMulti product delivery vans

• Van SalesmanVan Salesman

• Stockist / Dealer retail deliveriesStockist / Dealer retail deliveries

• Perishables multiple deliveries Perishables multiple deliveries

PackagingPackaging• Very Specialized domain & an IndustryVery Specialized domain & an Industry• Good looks / Preservative / Protection/Printing statutory Good looks / Preservative / Protection/Printing statutory

guidelinesguidelines• Quality of material preservation for food / chemicals/ Quality of material preservation for food / chemicals/ • EOQ sizesEOQ sizes• FFS (Form/ Fill & Seal packaging for toothpastes/Liquids FFS (Form/ Fill & Seal packaging for toothpastes/Liquids

/Pan Parag)/Pan Parag)• Blister packing for tabletsBlister packing for tablets• Bottles/Vials/Plastic bottles/bags/sachetsBottles/Vials/Plastic bottles/bags/sachets• Bagging ( Fertilizers / Chemicals/Food grains)Bagging ( Fertilizers / Chemicals/Food grains)• ContainerisationContainerisation• Materials( Paper / Plastic/ Aluminium foils/ Glass/ Materials( Paper / Plastic/ Aluminium foils/ Glass/

Wood/Metal/Jute/Cotton/Bubble wrapper)Wood/Metal/Jute/Cotton/Bubble wrapper)• Based on products food, cosmetics, toiletries, textile, Based on products food, cosmetics, toiletries, textile,

building material, Gases, Liquids, Hazardous chemicalsbuilding material, Gases, Liquids, Hazardous chemicals• Preservatives like Salt/ Refrigeration/Nuclear treatmentPreservatives like Salt/ Refrigeration/Nuclear treatment• Reusable / Use & disposeReusable / Use & dispose