Managing a Distribution Network: 14 Challenges to Overcome

 

Managing a distribution network means addressing complex and multiple issues. It involves reconciling potentially contradictory objectives (such as satisfying distributors and increasing margins) while uniting your network.

Here are the 14 challenges for successfully managing your distribution network.

No. 1: Gaining Commitment from Sales Representatives of a Non-Exclusive Distributor

Since they sell multiple brands, it’s difficult to unite sales representatives around our brand.
Tip: Create a privileged relationship between the brand and the distributor, for example, by organizing a “distributor club.”

No. 2: Regularly Visiting all your Partners

A brand’s sales representative will manage many outlets in the distribution network, which they don’t have time to visit as often as necessary.
Tip: Facilitate communication between your sales representatives and those of your distribution network on a communication platform.

No. 3: Motivating a Distributor’s Entire Sales Force

Often, a brand’s sales representatives only have time to visit the best salesperson (the one who cares most about the brand).
Tip: Implement incentive programs that don’t just reward one or two people, but the entire sales force.

No. 4: Standing out among Distributors

It’s about positioning your product/brand in the mind of the person selling to the end customer. The salesperson has a decisive influence on the end customer depending on whether they recommend a model or not.
Tip: Address distributors’ sales representatives directly and provide them with training content on your products.

No. 5: Measuring the Real-Time Performance of each Player in your Distribution Network

Yet, it’s essential for agile management.
Tip: Centralize your data in a tool like Incenteev, which allows you to see the detailed real-time performance of each agency and each sales representative in your distribution network.

No. 6: Communicating with your Distribution Network

Often, communication is with an agency director and not directly with sales representatives. The latter will then pass the information down to their managers and only then to the salespeople. It’s highly likely that the message will be altered.
Tip: Maintain direct communication with all levels.

No. 7: Managing a Distributor’s Salespeople

A brand does not have the right to directly manage its distributor’s salespeople because a distributor’s employee could claim to be an employee of the brand and, for example, demand severance pay.
Tip: Do not give direct orders to distributors’ salespeople, but rather try to provide informational content and offer sales support for your product.

No. 8: Managing Competition among Different Distributors

In the same territory, a Canal+ subscription can be distributed by Carrefour or Darty; it’s difficult to unite them.
Tip: Organize challenges where sensitive distributor data is not disclosed.

No. 9: Training the Sales Representatives of your Distribution Network on your Products

The effectiveness of your distribution network largely depends on your resellers’ knowledge of your products. Training is therefore crucial.
Tip: Provide content about your product through a sales engagement platform. With the Incenteev application, you can transmit content, see who has viewed it, and offer quizzes to test your sales representatives’ knowledge.

No. 10: not Overwhelming your Distributors with Tools

Each supplier will provide its tools to its distributors, and a distributor can end up with a significant number of tools they are supposed to connect to regularly.
Tip: Ensure your tools are as simple as possible, as few as possible, and that they integrate perfectly with those of your partners.

No. 11: not Offering Incentives that Exceed Sales Representatives’ Salaries

This could give the impression that the sales representative works for the brand and not the distributor.
Tip: Find out about your partners’ salespeople’s incomes and adjust your incentives accordingly.

No. 12: Avoiding Pitfalls with your Network’s Managers

Often, agency directors won’t want their sales representatives to be rewarded or for others to participate in their motivation, this is to maintain control over their sales force.
Tip: You can grant group rewards that will also benefit your distributors’ management.

No. 13: Re-engaging Middle Management

In a distribution network, middle management often acts merely as a conduit.
Tip: Empower field management; for example, with Incenteev, a field manager can organize their own challenges in a few clicks.

No. 14: Getting to Know Sales Representatives Better to Build Trust

Tip: Take the time to meet sales representatives, talk with them, learn about significant events in their lives, and create a file summarizing birthdays/weddings/happy events to send personalized messages that show you know them.

Conclusion

It is by addressing these issues that you build a relationship of trust with your network. Building loyalty — as we’ve seen — is not easy, but it’s the best competitive advantage you can gain. A network that champions your products, from managers to final sales representatives, is a guarantee of success.
Incenteev can help you address these challenges to boost the efficiency of your distribution network.

And you, are you facing these issues? How do you deal with them? Let’s discuss!

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