a few weeks ago, my bos reminds us that the essence of distribution is balancing supply and demand. This balance will lead the product to be sold in the reasonable price, therefore the margin can be produced properly. This balance also makes the lead time to customer is acceptable and lead the brand to have a better customer satisfaction index and, in the end, the brand image.
In the reality, it's not too easy too apply the whole best practices concept. In my industry, mosty, forecasting is the most difficult aspect in distribution. School gives us theories and cases but experience gives us expertise. And it's still not enough.
Top management commitment is the most important key to open the door of ideal distribution. Base on my practical observation, fairness is the main role in distribution system. The system should be rigid and flexible in the same time. It should be transparant in the surface but the internal operation can do some underground action when it necessary.
Actually my company has had that system but we dont have strong commitment to apply it consistently. Like Trezeguet said about Juventus yesterday, a ferrari needs a proper (special) driver, sometime working hard is just not enough anymore.
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