Distribution Chain Management

Definition:

Distribution Chain Management is a combination of technology and best practices that provides information that enterprises need to distribute and sell essential products in ways that enhance profitability.

Advantages to using the Internet in DCM:

• Provides standard, economical information and document exchange for members of the distribution chain.
• Speeds transmittal of sales, marketing, inventory and availability, pricing and discount, advertising and promotion information, and product specifications.
• Reduces opportunities for errors
• Provides a more level playing field for all size members of the distribution chain.

Functions included in DCM:

• e-Ordering
• Selling, billing and collection
• Portals
• Strategic distribution
• Distributor performance
• Distribution chain inventory management

Possible Impacts on Profitability:

Improve revenue

• Reduced customer delivery cycle times
• Improved product quality
• Increased margins & market competitiveness
• More effective cross-selling

Reduce cost

• Eliminate non-value added layers & processes
• Leverage discounts, rebates, credits and terms
• Streamline billing and collection processes
• Reduce inventories, receivables and distribution costs

Improve efficiency

• Reduce administrative time
• Standardize processes
• Compress distribution cycles

Increase visibility

• Track and utilize quality of distribution resources
• Monitor distributor effectiveness
• Leverage historical information

- R. S. Kulzick - 10/12/2002 -

Contact rkulzick@stu.edu with questions or comments about this web site.
Copyright © 2002 Raymond S. Kulzick - Last modified: September 13, 2008