Distribution channel is a way to make sure the product can reach the consumer. The main goal is to accommodate the availability of products in many outlets and at any time. That way, consumers can immediately use the product.
Distribution channels must be carried out efficiently because the impact will be directly felt on sales. To ensure that distribution goes well, companies can pay attention to product distribution methods, either through direct channels, indirect channels, or hybrids.
For direct channels, producers send products directly to consumers so that producers have full control over the distribution process. It is different with indirect channels which allow products to be sent by intermediaries, not sellers or companies.
Finally, a hybrid which is a combination of direct and indirect channels. Typically, the producer has a partnership with an intermediary, but still retains control over contact with the customer. Well, here are the distribution intermediaries of some of these distribution channels.
1. Retailer
Retailers are intermediaries often used by companies, so each business has full selling rights. However, generally the price sold by retailers is higher than the price issued by the company. Supermarkets, pharmacies, restaurants and bars are included as retailers.
2. Wholesaler
These intermediaries generally will not buy and sell goods in small quantities. Wholesalers will return to selling products in their own stores or to other retailers. Because purchases are made in large quantities, the prices that wholesalers pay to companies are usually also lower.
3. Distributor
Distributors are indirect channel intermediaries because they are tasked with selling, storing, and offering technical assistance to retailers and wholesalers. In its operations, the role of distributors is focused on certain areas.
4. Agent
An agent is a legal entity hired to sell company goods to consumers who will later be paid according to the commission from the sale. In this case, the relationship between the intermediary and the company belongs to the long term.
5. Brokers
Apart from agents, other intermediaries who are also hired and earn commissions are brokers. In contrast to agents that last for a long period of time, the company's relationship with brokers only lasts for the short term.
6. Internet
Not many are aware that currently technology has functioned as a distribution intermediary, let's call it the internet. Consumers only need to access social media, and download applications to buy a product. This can be seen with the rise of online stores.
7. Sales team
Sales teams within the company are responsible for selling the product. Even in a large company with a wide variety of audiences and products, it is likely to have more than one team responsible for selling the product.
8. Resellers
As the name implies, resellers will return to selling products to consumers. To get these items, resellers will buy goods from manufacturers or retailers. These resellers can appear as individuals or even companies.
9. Catalog
Sales with a catalog system is when a seller offers his products using magazines. This way of selling can be said as direct channel sales because it is directly connected to companies and consumers.
In making a profit the sellers will get a commission from the number of products they sell. Although it sounds old-fashioned, this method is still used for beauty products.
To find out which one is suitable for use, it's a good idea to make a comparison, review the project, costs, company routines, market potential, logistics, and location first.
Look at how competitors distribute products, adjust the type of distribution to the company's efforts to solve problems in the market, then to make sure the costs incurred are commensurate with the results, do a distribution analysis.
In addition, conduct a market potential analysis and ensure that the distribution is aligned with the projects and business activities. Also pay attention to distribution logistics, and the location of intermediaries because your product must be available in an area close to the location of your target consumers.
Managers must know the product flow before it enters the company until it reaches the final consumer. Through the Supply Chain Management program, managers in both operational and non-operational positions can broaden their business horizons by linking functions within the entire business chain and network.
Kanban is a project management methodology originating from Japan. This method is very popular in various industries, especially in software development.
This methodology was originally developed by Toyota in the 1940s as a system to increase efficiency in car production. However, over time, Kanban principles have been adapted for various other work contexts.
Understand more about what kanban is, its principles, how it works and its advantages and disadvantages by reading this article to the end.
Kanban is a project management methodology that prioritizes visualization of workflows to increase team efficiency and effectiveness. The word "Kanban" means "visual board" or "signal card" in Japanese, referring to a board used to display work status.
Kanban principles help teams manage their work in a more structured and transparent manner, so as to provide more optimal results. This methodology focuses on quick turnaround and optimization of work steps to reduce waste and increase productivity.
Here are some Kanban principles that help teams work more efficiently and transparently:
Kanban requires teams to use visual boards to show their workflow. This board usually consists of several columns representing various stages in the process, such as "To Do," "In Progress," and "Done."
With this visualization, the team can monitor overall project progress and detect obstacles or bottlenecks that may occur.
One of the main principles of Kanban is to limit the amount of work in progress at each stage. This helps prevent excessive multitasking and ensures that work gets done faster.
WIP limits encourage teams to focus on completing tasks before starting new ones, thereby improving work flow.
Managing Work Flow
Kanban encourages continuous and efficient work flow management. By continuously monitoring the workflow and making adjustments as necessary, the team can ensure that the project runs smoothly and efficiently.
This monitoring also helps in identifying and eliminating obstacles that may arise.
By visualizing work and enforcing WIP limits, Kanban encourages better communication and collaboration between team members. Everyone can see what is being done and what is prioritized, minimizing confusion and increasing transparency.
Kanban encourages a culture of continuous improvement. The team regularly evaluates their work processes and looks for ways to improve efficiency and effectiveness. Retrospectives or periodic reviews are often conducted to identify areas that need improvement.
How Kanban works starts with creating a Kanban board that visualizes the team's workflow. This board can be a physical board with cards or use digital tools such as Trello, Jira, or Azure DevOps. The columns on the Kanban board are tailored to specific stages of the team's work process.
Once the Kanban board is created, the team determines WIP limits for each column. These limits are usually based on team capacity and complexity of work.
The team then started using Kanban boards to track and manage their work. This management includes the activity of moving cards from one column to the next according to work progress.
Using Kanban in project management offers various advantages that can increase team efficiency and collaboration, including:
Teams focus on completing tasks before starting new ones, reducing excessive multitasking.
The next advantage of Kanban is that being able to visualize work on a Kanban board provides clear visibility of the project status. This makes it possible to monitor developments in real-time.
Kanban can be easily adapted to different types of projects and teams, there is no one-size-fits-all approach.
This approach reduces the risk of errors that often occur due to excessive multitasking and unnecessary distractions. When teams focus on one task, they tend to be more thorough and careful, resulting in better output.
Visualizing work and WIP boundaries encourages better communication and collaboration between team members.
Even though it seems perfect, like every other methodology, Kanban also has some drawbacks that need to be taken into account to ensure successful implementation.
Implementation of new methodologies often faces resistance from the team.
Setting and adhering to WIP limits can be challenging in a dynamic and rapidly changing environment.
Kanban requires continuous monitoring and adjustment, requiring commitment and discipline from the entire team.
Kanban relies heavily on visualization of work which can be problematic if not maintained properly.
Although flexible, Kanban can be less effective for very large or complex projects without additional management methodology.
Kanban is an effective and flexible project management methodology and can help teams improve the efficiency, transparency and quality of their work. Kanban allows teams to better manage their workflow and achieve more optimal results.
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Chatbots are a technological innovation that has changed the way we interact with digital services. This intelligent computer program is designed to carry out conversations with humans via text or voice, providing automatic responses that mimic human interactions.
By utilizing artificial intelligence, chatbots are able to understand user input and provide appropriate answers. As a result, chatbots can be said to be very useful tools in various fields, from customer service to e-commerce.
If you want to know more about chatbots, here is a complete explanation of chatbots!
A chatbot is a computer program designed to carry out conversations with humans, either through text or voice. The ultimate goal is to provide automated responses that mimic human interactions.
Chatbots are often used to provide information or handle user requests. Uses artificial intelligence technology to understand what you say or type, then provides appropriate answers.
Chatbots can be used in various places, such as in banking applications, online stores, or company websites.
With chatbots, companies can speed up customer service and provide information to users without having to wait for a response from humans.
Chatbots provide many benefits for businesses, such as improving customer service, sales, and brand loyalty.
Apart from that, chatbots also help in saving costs and increasing operational efficiency.
Here are some of the benefits of chatbots for business:
One of the main advantages of chatbots is their ability to provide non-stop customer service.
This means customers can ask questions or get help at any time, without having to wait for office hours.
This not only increases customer satisfaction but also expands business reach in global markets with different time zones.
Because it can answer common questions automatically, chatbots can reduce customer service workload.
For example, chatbots can provide information about products, ordering processes, or shipping policies.
By answering routine questions such as FAQs, chatbots are a great choice for saving time and operational costs.
Thus, customer service can be allocated to handle more complex and strategic interactions.
Chatbots can help sell products directly through social media platforms, such as Instagram and Facebook Messenger.
This not only expands sales reach, but also provides an integrated shopping experience across various channels.
Chatbots can help reduce friction in the purchasing process by providing 24/7 service, product recommendations, relevant promotions, and guidance for completing transactions.
Thus, it can improve the overall user experience.
A common problem in e-commerce is abandoned shopping carts.
However, the use of chatbots can help mitigate this by providing users with important information before they reach the checkout stage.
The use of chatbots helps reduce stress for both employees and customers.
For employees, the high workload of handling many of the same conversations and questions every day can lead to burnout, dissatisfaction, and an imbalance between work and personal life.
Chatbots can help automate many of these tasks, so employees can focus on more important and meaningful conversations.
Meanwhile, for customers, chatbots provide a faster and more responsive service experience.
This way, customers don't have to wait long to get answers or help, thereby reducing their frustration when interacting with customer service.
The next benefit of chatbots is that they can help handle appointment requests easily.
With this feature, users can shop online, then make an appointment online via computer or cellphone.
Chatbots can provide support in various languages so they can help businesses grow globally.
An example is the Merci Handy chatbot which can provide services in English and French.
Chatbot implementation can reduce operational costs for the customer service team. The reason is, by using chatbots, companies don't need to employ many staff to provide 24/7 service.
Because chatbots can work around the clock with a monthly subscription fee that is much more affordable than hiring staff.
Chatbots work based on three main components, namely Natural Language Processing (NLP), Machine Learning (ML) algorithms, and Rule-based systems.
In rule-based systems, chatbots follow "if-then" rules that are pre-programmed by developers.
These chatbots provide predetermined responses based on user input. However, the responses are limited and may not be effective for complex questions.
This technology allows chatbots to understand and analyze human language, both in written and spoken form.
NLP algorithms break down user messages into meaningful patterns, recognize intent, and extract relevant information.
By understanding the context and intent of a user's question, chatbots can provide more accurate and natural responses.
This technology allows chatbots to learn from various datasets and user interactions, improving their responses over time.
ML-based chatbots become more intelligent and adaptive with continued use, improving their ability to interact with users effectively.
Here are some examples of chatbot use that you may be familiar with and often use:
By looking at the explanation above, now of course you understand that chatbots have great potential to continue to improve business efficiency and user experience in the future.
With its ability to provide 24/7 service, answer questions automatically, and even assist in the sales process, chatbots can be said to be a valuable asset for many companies.
If you are currently running a business, you should immediately integrate chatbots into company operations.
Integrating chatbots into company operations not only provides a competitive advantage but also helps face increasingly complex market demands.
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An implementation plan will help your project run smoothly and according to plan. Whether for a marketing project or any other type, an implementation plan will help you document the process and progress of a project.
This plan should also be the first thing you create before the project gets underway. So, to help you prepare it properly, the following article will explain it in depth.
An implementation plan is a note and document that contains strategies, plans, scope of team work, project targets and objectives, detailed activities, and various team needs to carry out the project.
Quoted from TeamWork, this document is also often referred to as a strategic plan that ensures the project runs properly. The implementation plan will be the main reference and source of information for you and your team throughout the project.
Whenever there are questions regarding what should be done and who should do it, everything will be stated in the implementation plan.
If the project you are undertaking is still on a small scale, make sure there are these four components:
An implementation plan can make your team have the same vision and understanding of the goals of a project.
Understand the following four important benefits.
Without a detailed and neat implementation plan, it will be difficult for you to know the progress and problems you are facing. Especially if the project is medium or large scale.
This plan will become the main benchmark and reference for your team. Every decision from a project will refer to the documents that have been created.
Of course, the implementation plan will not only be held by your team. Other teams, especially those collaborating with you, must know and take part in creating this plan.
This can also help each team member manage their expectations or expectations regarding project progress.
As mentioned above, in an implementation plan, it must be clear who is responsible and what the duties of each team member are.
This information will help you know who to contact for certain parts of the project. This division of tasks will make team members more independent and understand their role in project success.
Related to the previous point, your team must know its role in the success of the project. That way, every individual involved in a project will have the same goals and mindset.
Agree on This Before Making an Implementation Plan
According to Nifty, there are several things your entire team must agree on before creating an implementation plan.
The following are the steps and methods for creating an implementation plan:
Not only who are the team members who will help you during the project, but also stakeholders or other teams in the company. Also make sure you build clear communication to avoid misunderstandings.
Don't forget to provide your team members with an understanding of who on the team roster and which individuals are involved.
After all the people and teams involved have received information regarding the project, your next task is to divide their roles.
Of course, these roles and tasks must match your individual abilities and the needs of your team. Also explain in detail what your expectations are for each task and role.
This list is often overlooked or is just additional information. However, if your project is large scale, of course from the start you and your team must know the equipment and assets needed.
This is to avoid disrupting the timeline and progress during the project.
You can discuss this with other teams. You can also involve team members to create more detailed estimates.
After the timeline, goals, targets, people in charge and assets are formed, it's time to prepare success benchmarks or KPIs.
KPIs can help you and your company to measure the progress of the project and what improvements are needed later.
Make sure you create a clear and detailed list of the entire project. You can divide each point by stage (preparation, project in progress, or end of project) and add details or subpoints for each stage.
This section is a derivative of the timeline and KPIs. You should create duration estimates for each activity and project stage.
If this project has a budget, you must use it appropriately and include it in the implementation plan document.
Make a backup plan for unexpected events
Even if you and your team have agreed that there will be unexpected events, still make a backup plan.
This is to help you be better prepared and not delay the continuation of the project.
An implementation plan is a crucial document for both small, medium or large projects.
An implementation plan will ensure you know the progress, problems, and results of the project.
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