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Saturday, November 7, 2015

You Should Give A Grade For Your Distributors!





Why Distributors Grading Needed?
Distributors are principal business growth strategy executor on market (Distributor KPI focus on two main role: sales achievement and growth, coverage achievement and growth (vertical and horizontal) so when founded business isn’t growing, distributor is the first party that blamed (with a high note that product quality and demand creation activity is ok).

At least two major considerations of why needed to grading distributors periodically? The first consideration is: principal needs to know quantitatively how well distributors running their functions (products distribution, services, payments, trade marketing execution, etc.). The second consideration is: as a strategic input for performance improvement of both the principal and distributors (in sales & marketing, finance, human resources, production, and supply chain).

When We Do That?
At least once every 3 or 6 months so there is still time to make corrective actions for the achievement of the annual target.

How We Do That?
Many ways to distributors grading, the simplest way is grading based on achievement of annual sales. Sales is only one of final variable that depend on many root causes and there are more KPI performance of distributors that interrelated variable, so it isn’t enough just to do sales assessment.

Latest approaching is using DPMS tool "Distributor Performance Management System. This tool was created based on the latest management concept of "Balanced Scorecard" which is used to measure, analyze, and manage the performance of distributors.

And finally, this is how the machine works: define KPI for every aspect of Balance Scorecard, determine the weight of its and put percentage of weight, set targets for every KPI, specify how to calculate the achievement of its, specify the source of the documents, create a standard of distributor grade, count scores DPMS each distributors, grade each distributors based on standard score, and finally make your decision: it could be corrective actions or termination, depend on yours situation.


Jika Anda ingin informasi lebih lengkap mengenai topik ini, dapatkan E-book Distributor Grading (Cari di katagori E-Book) atau klik link berikut untuk pindah halaman ke E-Book Distributor Grading.

Cheers Up !
Selamat Bekerja!



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