The quality of the distribution network as a characteristic of a trade enterprise

The general characteristic of a trade enterprise is based on the fact that since the main condition for the sale of products, especially characterized by a continuous production process or a significant seasonality factor, is the stability of sampling, the distribution network entities (hereinafter - TPN) must adhere to the established volumes of quotas sampling rhythm. The parent enterprise is, first of all, interested in a stable flow of working capital, the accumulation of large stocks of products in a period of falling demand can lead to a significant shortage of working capital. Provided that there is a shortage of products in a season, TPN, as a characteristic of a trade enterprise, should form a strategic stock, and regulate its own marketing policy tools during a period of seasonal decline .

In order to prevent negative competition, both between competing organizations and between subjects of their own TPNs, the price level determined by the parent company and applied by TPNs should be uniform. Otherwise, a situation may arise when various entities of the distribution network in the same region can sell products at different prices, which will cause consumer dissatisfaction, possible violations of the primary responsibility zone and adequate countermeasures of competitors. In particular, strict observance of the pricing policy is necessary when the company declares the thesis that the subjects of its own TPN are selling at producer prices. The characteristics of the trade enterprise should also take into account that the successful conduct of economic activity, due to the specifics of the products and the structure of local consumption, may be due to the presence of the TPS subject of retail and warehouse space, as well as special equipment and facilities. A comprehensive organizational and economic characteristic of a trade enterprise is based on the assertion that the presence of a TPN subject with developed infrastructure allows one to form many competitive advantages:

1) the formation of the optimal assortment for the entire product range, due to which potential and real consumers will be able to make complex purchases;

2) the possibility of selling an assortment of similar products from other firms and companies;

3) the availability of the possibility of creating a strategic stock of finished products in anticipation of a period of active seasonal demand;

4) ensuring operational planning of production activities;

5) the availability of product delivery to the consumer on the terms of DDU;

6) the creation of conditions and opportunities not only for wholesale, but also for retail trade, the formation of a favorable image of the TPN subject and the parent company;

7) the characteristics of the trade enterprise also include the implementation of strategic investments in real estate, forming the long-term competitiveness of the enterprise.

When forming internal selling prices or for TPN entities operating in a certain territory, pricing principles applicable in the region are mandatory applied by directives of relevant ministries and departments. If the TPN entity is located abroad, its pricing policy should not violate the laws of the country. The characteristics of the trade enterprise provide that the main principle in the organization of TPNs is the regional division of the functioning of TPN entities. In practice, a term is used as a zone of primary responsibility, which means a geographical or administrative region within which a TPN entity can carry out its activities.

Source: https://habr.com/ru/post/C38606/


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