Managing the Distribution channel is a complex task. If you are running an electronics components business, you are probably selling through a combination of direct salespeople for big accounts, manufacturer reps for better territory coverage, and distributors to act as fulfillment agents to supply the broader market demands. With globalization, many of the major customers you sell to directly end up getting supplied through distributor fulfillment services to contract manufacturers, mostly in Asia.
As the supply chain gets more and more complex, keeping all channel partners under control and aggressively selling your products becomes a major problem. Most sales management solutions do not deal with the entire range of management issues that are part of the channel fulfillment process effectively. Just getting shipping and inventory information from your channel partners is hard enough — let alone finding out about their business opportunities and forecasts.
At NEHANET we have taken on this challenge and in this blog we will discuss how we handle the Ship and Debit (SnD) process, Price Protection, and financial exposure (Accrual) planning.