When we talk about logistics services, we are talking about processes that carry out the distribution of merchandise through different channels. These processes do not have a certain strategy to carry out logistics, that is, it can be carried out in different ways. However, if specific strategies are implemented, the process can become much more efficient.
A common mistake is to think that distribution logistics will always be the same. Depending on what the product is, the value it has or wants to be given, and the specific circumstances in which said distribution will take place, a specific strategy will be adapted.
Clearly, there are different types of distribution strategies and each of them is effective for each particular case. These have proven to be a guarantee of success for the logistics industry. Therefore, we recommend paying attention to each of these strategies.
What are distribution strategies?
Before knowing the different strategies that favor distribution in the logistics area, it is necessary to know how they are defined, in addition to the importance they have for logistics businesses. In the first place, the way in which the distribution of a product is carried out is called distribution strategies.
Distribution channels are usually of two types: direct or indirect. When it comes to a direct distribution channel, the manufacturer is generally the same person in charge of the distribution that will get the product to its final customer. However, as it is an indirect distribution channel, the manufacturer will pass the product on to one or different intermediaries, so that, in this way, they are in charge of getting the product to the end customer.
It should be noted that indirect distribution increases the value of the product in each of its phases. Depending on the product, the amount of it and other factors, it is decided which is the most appropriate channel that you can choose. The same goes for types of distribution strategies. Depending on the type of distribution that is warranted, a special strategy will be implemented. Below, we will explain the different distribution strategies that exist:
Intensive distribution strategy
The intensive distribution strategy is specifically characterized as being the most suitable for consumer products for large masses. That is to say, the products that will be consumed by a wide public and that are positioned in a multitude of points of sale. Places where the end customer can easily access them.
Due to the fact that this type of distribution is on a large scale, the products must require a logistics service through the indirect channel. It will go through various intermediaries from manufacturers to final consumers. The intention of intensive distribution strategies is that customer service and after-sales service are present at all times. Some products with which this strategy will work perfectly are food products, cosmetics, pharmacy, among others.
Selective distribution strategy
Unlike the intensive distribution strategy, the selective one is more limited. It has various points of sale of the product, however, it does not sell massively. The product is purchased in various establishments, but only in those that are associated with the manufacturer or the sales manager.
The selective distribution strategy is suitable for products that are in fashion. Like clothes, shoes and even accessories. These are products that can only be purchased in selected stores, where the consumer customer must go specifically. It should be noted that it is also valid for the customer to contact these specific stores for the special preparation of the products..
Importance of implementing distribution strategies in logistics services
It has become clear that for a product or service to reach the final consumer, it is necessary to implement a strategy that establishes its route. We also explained that through various distribution channels they will be able to reach their destination and multiply the number of ways in which the consumer can find the product or service.
However, we will explain some factors why it is of great importance that your logistics services and each of these distribution channels implement the aforementioned strategies.
More possibility of sales
When a company is in full development/growth, it is necessary to implement distribution strategies in the system with which they deliver their products or services to their customers. Its importance lies in the fact that it increases the possibility of achieving more sales through an adequate strategy. What will cause the distribution to be efficient and thus consumers purchase their products or services.
Greater commercial reach
You must be clear that every company must have a distribution network and most of the time it is carried out through third parties. In other words, they will need to contact a logistics business that will advise them on the type of distribution they require and which strategy to apply. Even your business may be recommended by sales representatives who have allies and in this way you will ensure a greater scope of sales.
Better distribution process
The different distribution channels are connected with different intermediaries and these will offer more resources and experience so that you can improve your distribution processes. In other words, in both cases, both companies will benefit, since your business will be able to improve their processes, but they will be able to ensure that their product reaches the hands of consumers in an optimal and safe way.
It is possible that a company can use different distribution channels for its products and that will allow your business to expand the number of contracts it has. In addition to reaching a greater number of end consumers. Distribution strategies will cause the logistics service you offer to be reliable and of high quality.