Why is Distribution Strategy so crucial and why is it one of the most resilient sources of competitive advantage?
Only few organizations are able to effectively capture the full potential embedded in their Distribution Channels. Distributors and Wholesalers are often managed with a patchwork of contract clauses which fall short of shaping a performing and loyal Distribution, instead incentives expenses soar, revenues leakages abound and organizations fall prey of vertical and horizontal consolidations. This scenario can result in double digit deterioration of the profitability and sensibly affect the company growth.
This chapter unveils the BEST-X methodology, a pragmatic approach that allows to build a competitive advantage by creating performing Sales Channels. It explains how a better Commercial Policy improves the Go-to-Market execution and consequently the “Customer Experience”, a core proxy for long term cash-flows maximization. It also tackles deeply rooted and common management misconceptions such as the “democracy ideal” or the “ticket to play” and provides the principles of a successful distribution management.
At the end of this section, you will master the key concepts of a successful Distribution Strategy and Management, understand the link with long term profitability and customer experience, learn the key concepts and technicalities and focus on few but really core principles.