Why Retailers?

As a customer quality engineer, I've frequently been asked by my cross-functional team, 'Why do we need retailers?'

Understanding the role of retailers, especially in an industrial market, was challenging when we'd encountered problems caused by retailers, like the 'Code A' story which I shared before.

Once, the company's CEO, at the time, humorously quipped, 'They should have been called "Poshtdari" instead of "Moshtari," reflecting the constant stream of issues reaching our central office. Managing retailers becomes particularly challenging when dealing with a mixed distribution channel, including direct, online, and indirect sales to customers.

The distribution channel, as a crucial part of network design in supply chain management, presents one of the most strategically challenging tasks for companies. It requires continuous monitoring and improvement, with a focus on two key factors:

1. Value provided to the customer.
2. Cost of meeting customer needs.

Several factors, influenced by distribution networks, impact customer value, including:

• Response time.
• Product variety.
• Product availability.
• Customer experience.
• Time to market.
• Order visibility.
• Returnability.

In summary, retailers invest in your products to manage and meet varying demands based on product variety and availability in the market. The decision to distribute through retailers is a strategic and challenging task for companies, requiring constant monitoring; and depending on the nature of the product and it's related market"

P.S.

"Poshtdari" in Persian: Always in front of the door

"Moshtari" in Persian: Customer