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Think of your logistics

Date posted: 31.03.2015 | Author: Harry Bovensmann

Distribution is all about logistics. It is about keeping records and precise timing. However, there are many ways of approaching this. The way you distribute your product depends on your business model. The main models are:

Business to Consumer

It is common to start with a business-to-consumer model and to then grow your business so you are eventually distributing business-to-business. When you work in the business-to-consumer model, you might have your own store or customers might order your products online. Easiest is direct selling, when customers take stock directly after they have paid for it, for example at markets or festivals. Common additional methods of distributing goods to the consumer are through parcels via the post office, or by freighting products that have been bought online. Make sure that any delivery or postage costs are factored into your selling price.

Business to Business

When working with a business-to-business model, the businesses buying from you may determine how you distribute products to them. Some big companies, for instance, may have their own distribution and logistics agencies. Some important considerations to take note of are, where you will store your products before they are distributed and how you will track your products when they leave your storage space up to when they have been received by the customer. Distribution can be complex, with unexpected challenges. There are many service providers focused exclusively on distribution, that you might be able to use very effectively.

And of course there is a combination of both models. Whether you outsource distribution, or manage it yourself, you need to figure out a system that works for your customers, your products and your business.

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