Redrawing The Map How A Fortune 100 Technology Company Simplified Its Channel Strategy To Improve Profitability, Speed And Service
A leading high technology company used a variety of routes including a huge network of distributors, wholesalers, retailers and other business partners to sell the same products around the world to move its products to market. While there was a suspicion within the company about their approach being inefficient, but they had no way of knowing. The company needed to know whether their product distribution strategy was faulty or not. The company had been solely focused on measuring profitability, by region and by product. It had no way of knowing whether its routes to market were working properly as a whole or individually - especially when considered within the context of discounts, operating costs and competitive pressures. The company engaged Deloitte for a complete analysis of its distribution channel. Deloitte helped the company analyze its models for moving products to market globally. Some of the key considerations during the analysis included finding whether the company really needs all those resource-intensive routes to market or could they be more efficient, were the right products were being delivered through the right routes to market and were the needs of business owners and end customers being met. These important considerations helped the company in analyzing the routes to the market, making a financial assessment of each of the routes, and based on the findings, made suggestions and roadmap.