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What are the most effective ways to manage distribution networks in the hospitality industry?

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Distribution networks are the systems that deliver goods and services from suppliers to customers in the hospitality industry. They are crucial for ensuring customer satisfaction, operational efficiency, and competitive advantage. However, managing distribution networks can be challenging, especially in a dynamic and uncertain environment. In this article, we will explore some of the most effective ways to manage distribution networks in the hospitality industry, based on best practices and emerging trends.

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Rakesh Singh

Sr. Specialist, Supply Chain Operations @ FedEx l Linkedin Top Voice for Logistics Management and Warehouse Operations I
Rafa Rocha

SVP Commercial at Emergent Cold Latam

1 Assess your distribution needs

The first step to manage your distribution network is to assess your distribution needs. This means identifying your target markets, your customer segments, your service standards, and your demand patterns. You also need to consider your cost structure, your capacity constraints, your inventory levels, and your risk exposure. By assessing your distribution needs, you can determine the optimal network design, the appropriate distribution channels, and the suitable distribution partners for your business.

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Rafa Rocha

SVP Commercial at Emergent Cold Latam
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My experience with distribution in the hospitality industry is that the food chain becomes critical. Customers are concerned about the provenance of the food they are eating. Therefore, food safety becomes a crucial component here. Delivering fresh products frequently, implementing best practices of HACCP, maintaining the cold chain intact, and keeping the product's traceability will allow the hospitality business to protect the company against possible incidents.

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2 Optimize your network design

The network design is the configuration of your distribution facilities, such as warehouses, distribution centers, and transportation hubs. It affects your service level, your delivery time, your transportation cost, and your environmental impact. To optimize your network design, you need to balance these factors and align them with your strategic goals. You can use various tools and techniques, such as network analysis, simulation, optimization, and scenario planning, to evaluate different network alternatives and select the best one.

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3 Select your distribution channels

The distribution channels are the methods and intermediaries that you use to deliver your goods and services to your customers. They can be direct, such as online platforms, or indirect, such as wholesalers, retailers, or agents. To select your distribution channels, you need to consider your customer preferences, your product characteristics, your competitive position, and your channel performance. You also need to monitor and evaluate your channel performance regularly and make adjustments as needed.

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4 Collaborate with your distribution partners

The distribution partners are the external entities that help you execute your distribution activities, such as suppliers, carriers, distributors, or third-party logistics providers. They can provide you with access to resources, expertise, technology, and markets that you may not have internally. To collaborate with your distribution partners, you need to establish clear roles and responsibilities, share information and feedback, align incentives and goals, and resolve conflicts and issues. You also need to foster trust and commitment among your partners and leverage their strengths and capabilities.

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Rafa Rocha

SVP Commercial at Emergent Cold Latam
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3PL partner in the distribution business, most especially if they are focussed on the temperature-controlled business, will allow companies to focus on their hospitality business and not necessarily on the supply chain. Collaboration is key when talking about partnering with distribution partners. Setting the right level of services through the use of KPI's will allow companies to monitor the performance of partners and be able to fix problems when they come up.

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5 Adopt digital technologies

Digital technologies are the tools and systems that enable you to collect, process, analyze, and communicate data and information related to your distribution network. They can help you improve your visibility, agility, efficiency, and responsiveness in your distribution operations. Some of the digital technologies that you can adopt include cloud computing, internet of things, artificial intelligence, blockchain, and digital platforms. By adopting digital technologies, you can enhance your decision making, coordination, automation, and innovation in your distribution network.

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6 Embrace sustainability

Sustainability is the principle of meeting the needs of the present without compromising the ability of future generations to meet their own needs. It encompasses environmental, social, and economic aspects of your distribution network. To embrace sustainability, you need to reduce your negative impacts and increase your positive impacts on the environment and society through your distribution activities. You can do this by adopting green practices, such as reducing emissions, waste, and energy consumption, using renewable resources, and supporting local communities. You also need to measure and report your sustainability performance and seek continuous improvement.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Rakesh Singh

Sr. Specialist, Supply Chain Operations @ FedEx l Linkedin Top Voice for Logistics Management and Warehouse Operations I
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A manufacturing company may outsource their logistics and distribution activities to a 3PL company with strong distribution network. A 3PL company with strong physical distribution network equipped with digital capabilities will help the manufacturing company to serve its end customers , retailers, distributors, effectively and efficiently.

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Akhilesh Sinhasane

Business Development @ Magenta Ev Solution | Ex-Head Sales & Ops at Parcel Guru | Business Solutions & Development | Operations | D2C | E-commerce | Logistics | Strategic Planning | Start-ups | Ex-Shipway | Ex-Xpressbees
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In today's enormous competition, industry can use the Same-Day-Delivery and dark Store concept for Dark Stores/Warehouse models to reduce MOQ. Also with support of SDD (Same day Delivery) they can reduce transit time, high amount pending bills and stock pendency at clients end.

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What are the most effective ways to manage distribution networks in the hospitality industry?

1

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3

4

5

6

7

1 Assess your distribution needs

2 Optimize your network design

3 Select your distribution channels

4 Collaborate with your distribution partners

5 Adopt digital technologies

6 Embrace sustainability

7 Here’s what else to consider

Logistics Management

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What are the most effective ways to manage distribution networks in the hospitality industry?

1

2

3

4

5

6

7

1 Assess your distribution needs

2 Optimize your network design

3 Select your distribution channels

4 Collaborate with your distribution partners

5 Adopt digital technologies

6 Embrace sustainability

7 Here’s what else to consider

Logistics Management

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