How to Improve Distribution Management

Distribution management can be a vital part of any business. It is the process of moving products from the point of production to customers. This often includes storing, packaging, and transporting goods from one location to another. Companies that do not have distribution management in place or have inefficient systems may waste time and money on their logistics processes.

As such, it is important for companies to know about the different methods of improving distribution management:

Understand your customers

The first step to improving distribution management is to understand your customers. You need to know what they need, how they want it, and their demographics, behavior, and culture. You also need to understand their attitudes toward your company and its products or services.

The best way for you as a distributor to gain this knowledge is through market research–or in other words: talking with people! Ask existing customers why they bought from you instead of another distributor; ask them what they like most about working with you; ask them if there’s anything else they’d like from the relationship besides just selling their item in question (maybe an additional service). Then look into the demographics of these customers — where do they live? What kind of work do they do? How old are they? Are there any other demographic factors that might affect their purchasing decisions?

Know your products

The most important thing to know about your products is what they are. You should be able to explain their features, benefits, and uses with ease. If you can’t do this, then you need more time in the field learning about them.

It’s also important that you understand what your customers want from their purchases of these products – what they need them for and why they would choose one brand over another (or whether they would even consider purchasing at all). This way, when someone asks for a quote on a job or asks if we have anything new coming out soon, we will know exactly how best to respond based on our knowledge of our own strengths and weaknesses as well as those of our competitors’ offerings

Be ready for constant change

As a distribution manager, you must be prepared for constant change. Change is inevitable; it’s how you deal with it that matters.

One of the best ways to prepare for change is by thinking outside the box and looking at things differently than others do. If you approach situations from different angles, you may find a new way of doing things that works better than what was previously being done–and this can be very beneficial when dealing with an ever-changing industry like distribution management!

Monitor price changes and competitors’ moves

Monitoring prices is an important part of distribution management. You must keep track of competitors’ moves and market price changes to ensure that your prices are competitive but not too low or too high.

  • Make sure you know what your competitor’s prices are before setting yours. If they have an item at a lower price than yours, consider lowering yours as well in order to win over customers who would rather save money than pay more for something else (assuming there is no difference between the quality).
  • Monitor how much the product sells over time to determine if it should be raised or lowered accordingly. This will help keep profits up while still attracting customers who want value-for-money products

Set up a distribution system that works for you, not against you

You need to set up a distribution system that works for you, not against you.

  • Efficiency: The more efficient your distribution system is, the more money it will save you. If there are costs associated with moving goods from one location to another, then reducing those costs will help keep costs down overall.
  • Cost-effectiveness: You should always strive for cost-effectiveness in all areas of business because money saved means more profit left over at the end of each month or quarter. For example, if there’s an option between two suppliers who both offer similar products, but one charges less per unit than another (and thus has lower overhead), then choosing that supplier would be more cost-effective in terms of lowering overhead expenses, such as rent and utilities while still providing quality products/services at fair prices–which helps keep customers happy!

Move forward with new technologies that can help you grow

Technology is constantly evolving, which can challenge distribution managers who want to stay relevant in their industry. You need to keep up with new technology so that you can use it to grow your business and improve customer experience.

You can use technology in many different ways:

  • Increase productivity by automating manual tasks that take away from time spent on more important tasks
  • Cut costs by using software solutions instead of hiring additional employees or outsourcing work overseas
  • Improve customer experience by providing more personalized service


Distribution management is not easy, but it can be made easier with the right tools. By understanding your customers and keeping track of changing trends in your industry, you can create a better distribution system that works for you and not against it.