Determining the best way to distribute your product or service is essential to understanding its costs and 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
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.
Record your answers in a document and submit this along with any additional resources
Make up a plan and details
Step 1: Determine the Distribution Strategy
- Distribution Strategy: Our basic approach to distribution involves selling our product both online through our website and through select retail stores. This allows us to reach a wide range of customers while keeping costs manageable.
Step 2: Create a Supply Chain Diagram
- Our supply chain diagram includes the following components:
1. Manufacturer: XYZ Manufacturing Co.
2. Distribution Center: ABC Logistics
3. Retail Stores: Retailer A, Retailer B, Retailer C
Step 3: Research and Select Suppliers
- Manufacturer: We have selected XYZ Manufacturing Co. as our supplier for the production of our product. They have a track record of quality and efficiency.
- Distribution Center: ABC Logistics will handle the storage and distribution of our product to retail stores. They offer competitive rates and have a good reputation for on-time deliveries.
- Retail Stores: We have chosen Retailer A, Retailer B, and Retailer C as our retail partners based on their customer base and location. They will carry our product in their stores and help us reach a larger audience.
Overall, our distribution plan involves a combination of online sales and retail partnerships to maximize our reach and minimize costs.