Why You Should Hire an Expert to Develop Your Distribution Channel Strategy
Developing a distribution channel strategy can enable you to sell to customers in any area or market in the world, especially the U.S. For Brazilian companies interested in expanding their reach, establishing a global distribution channel strategy can enable them to sell to American consumers and tap into the country’s strong economic growth and high consumer spending. But in order to set up a successful distribution network in the U.S., you need local knowledge and industry-related experience.
When setting up a global distribution network, the decision on where to locate warehouses and how to operate them will be governed by these 5 factors:
Local Infrastructure. In order to achieve transportation efficiency to the destination market, it is important that you choose an operation base that can adequately support the anticipated distribution patterns.
Obtaining Proper Licenses. Having the proper bonds and licenses to distribute your product can often be a complex process, which is why it is important that you know how and who to communicate with throughout your operation.
Local Knowledge. It is important that you have local knowledge in setting up the transportation and distribution operations in your chosen region. Local culture, customs and labor laws all have significant influence over your employees.
Destination Knowledge. Besides having knowledge of the local infrastructure of your operation base, it is also equally important that you have knowledge about the various destination markets, in addition to their infrastructure and laws.
Handling Systems. While the transportation of your products is important, so is the process and cost of properly storing it.
There are a number of aspects that can determine how you should develop your distribution channel strategy. If you are interested in expanding your business to the U.S. and would like assistance in establishing a distribution channel strategy, ReachOut Business Solutions can help you and your business establish and significantly grow in the U.S. Contact us today to learn more.
