Traditionally, working alone or on your own was considered the most effective in managing conflict and getting your goals achieved. One can get by selling tangible products or services, working solely. Many tax accountants, lawyers, plumbers, electricians etc used to work that way.
However, contemporary studies show that in order to grow exponentially, you need to collaborate with other partners in the supply chain and implement new distribution channels. That is when the distribution conflict arises, and you might have to face large scale conflicts as compared to small disagreements in sole working.
In highly competitive marketplace, having many distribution channels ensure that you cover maximum market coverage in terms of sales. Even if the economy is in recession, an effective management of multiple distribution channels can make your product or service a big hit. Therefore, having conflict in a market is an indicator that there is effective demand, and hence should not be avoided. It only requires clever and well thought out marketing strategies from the suppliers to penetrate the market. If all the distribution channel partners are utilized optimally, everyone gains, and helps the supplier to know the customers’ needs fully.
At the end of the supply chain are the customers, which have various needs. Some customers require after sale services continually, and with such an efficiency which is unheard of. Others may not prefer such pampered service from your product, but might as well be hugely interested in what discounts they get. Whatever the customer needs are, your distribution partners are the only and best solution to help you out. The conflict arises as your distribution partners are also each other’s competitors. It is hard to keep everyone happy, but not impossible. Therefore, simple steps can be taken to keep all your partners on the same field.
Though these requirements are not standard across every industry, however they can be implemented with some modifications to every supply chain. The requirements to solve the distribution conflict are:
• Suppliers can set standard certification requirements for all its partners e.g. ISO 9001 certification. Also, if any partner is not certified, they can assist them with training,
• Financial rewards or discounts to those partners who make an extra effort in identifying new markets or customer needs and relaying them to the supplier,
• Acknowledge and reward all the partners in the supply chain, regardless of the sale made by the retailer.
These are very basic strategies to manage the distribution conflict. Many different marketing plans can be used to manage the supply chain effectively. In an economic environment like of today, a strong distribution can help the business to survive more comfortably. If the conflicts are managed efficiently, it will create great benefits for the supplier, its partners and the end customer.
