Integration toward lean distribution in archipelago
Integration toward lean distribution in archipelago
Totok Sugiharto , Contributor, Jakarta | Wed, 07/23/2008 10:53 AM | Management
The rule of competition in the fast-moving consumer goods industry will experience major changes. Innovations in the industry have brought some changes to the structure of the industry and the strategies adopted by players. One of them is the integration strategy that is aimed at anticipating external changes.
To become a successful player in this environment, a company should be able to answer (1) what preparations to make to anticipate external changes (2) what is the most effective strategy and how to effectively communicate and deploy it, and (3) what is the best way to align the business processes and create value for it.
To develop a strong position in the market, the most important things to understand are the needs and behavior of customers. Channel management is one of the powerful tools to identify the most profitable segment and to develop an efficient supply line to satisfy consumers’ needs. Market analysis and overview; geography, demography and channel are factors that affect the behavior of customers. Today, these factors are often used to classify potential customers. The modern channel has become more demanding, particularly in terms of business and impact on manufacturers’ and distributors’ profitability.