Determining the best way to distribute your product or service is essential to understanding both its costs and its value to customers. In this activity, you’ll research and develop a basic distribution plan. As your product idea and business case become more developed, you will likely return to adjust this plan. For now, it’s acceptable to use a combination of mock information as well as details from your start-up idea.
Step 1: Determine the Distribution Strategy
Create a new slideshow presentation. Add a title slide and a slide labeled Distribution Strategy.
Take some time to consider your product, your customers’ needs, and the costs associated with your specific distribution strategy.
If you are selling a physical product, think about how your channels of distribution carry costs like transportation, storage, product handling, and inventory control.
If your product is a service, note how distribution will be affected by costs including processing fees, banking costs, or online partner fees.
Add text to the slide. Describe in one or two sentences your basic approach to distribution. In other words, how is the workflow of your product organized?
Step 2: Create a Supply Chain Diagram
Create a new slide and title it Supply Chain.
Using graphics tools in the presentation software or your own graphics tools, create a diagram that depicts the stages or components of your proposed supply chain.
Step 3: Research and Select Suppliers
Conduct an online search for potential sources or manufacturers for any of the supplier components in your supply chain.
If your business is a service, research potential service suppliers, such as online payment tools that charge a fee.
On your supply chain chart, add text labels to indicate the names of the suppliers that make up the individual components of the supply chain.
Step 4: Evaluate Costs and Risks
Research the costs associated with each stage of your supply chain, including costs for transportation, storage, handling, fees, etc.
Consider the risks associated with each stage of the supply chain, such as delays in delivery, quality issues, or potential disruptions.
Create a new slide titled Cost and Risk Analysis and summarize the costs and risks associated with each stage of the supply chain.
Step 5: Develop a Distribution Plan
Based on your research and analysis, create a detailed distribution plan that outlines the specific steps you will take to implement your distribution strategy.
Include timelines, responsibilities, and milestones in your plan.
Add a new slide titled Distribution Plan and outline the key components of your distribution plan.
Step 6: Review and Adjust
Review your distribution plan and make any necessary adjustments based on feedback from mentors, advisors, or potential customers.
Continue to refine your plan as you gather more information and insights about your product and market.
Finalize your distribution plan and prepare to implement it as you move forward with your start-up idea.