Challenges faced by Distributors
Challenge 1 - I do not know whether we have dealt with this product. I will check and let you know, if it is available.
Many of the sales executives of distributors do not know the entire product range. On the average, a salesman takes orders for only about 40% of the products with the distributor. He is not aware of many products that may be available.
SOLUTION - We do not have to depend on the salesman’s memory to do more business. The information on availability of all products is made available to the retailers and other PharmaNetwork members.
Challenge 2 - Significant share of the profits have to be shared with the sales executives, who get the order and deliver the goods.
In future, there is a possibility of a manufacturer supplying goods directly to the retailers, to save on costs. The distributors will be affected and will have lower margins, than earlier. There will be margin pressure on middle layers between the manufacturer and the retailer.
SOLUTION - If the retailer’s order can reach the distributor and be processed with least human intervention, then the salesman can be eliminated from the supply chain. The distributor will have to ensure only delivery of the goods.
Challenge 3 - Mistakes are made in the invoices to retailers, in wrong products being billed.
Generally the sales executive informs the order over the phone to the operator, which induces mistakes. These mistakes generate additional work for the users in doing sales return/credit notes and ensuring that it is adjusted in the next invoice.
SOLUTION - System generated orders from retailers reach the distributors and get loaded automatically as a saved invoice. With minimal human intervention, the chances for errors are very less.
Challenge 4 - I am unable to expand my distribution area.
Most distributors are confined to specific areas in the city, and are unable to reach retailers in other areas. The sale completely depends on the number of sales executives they employ.
SOLUTION - Any retailer member can place an order on any wholesaler member, irrespective of the area they are in. The distributor would only have to arrange for delivery of the goods.