Student Login

CDE Classrooms

CDE Catalog

Manager's Files

Registrar

About CDE

 

2003 — The Business of Distribution

Course Block Description: 
Each of the three related course segments in this course deals with the business of distribution. The first discusses our role in the channel and how we add value for both of our channel partners. The second deals with basic financial facts in distribution, why it is important for the company to make an appropriate gross profit, and why it is a part of each person’s job to protect it. The final segment deals with changes in our role, relationships and responsibilities caused by changes in the distribution marketplace.

The content for this course is provided by Chuck Holmes, president of Corporate Strategies, Inc.

Competencies: 
On completion of the course block the student will be able to:

  • Discuss how distribution has become a valuable part of the channel
  • Understand how we have traditionally added value, and why we should be paid for that value.
  • Understand the function of the distributor from both the point of view of the customer and the point of view of the distributor employee.
  • Recognize the importance of his or her role in fulfilling the core contract with the customer.
  • Be able to calculate gross profit, gross margin, and markup.
  • Understand the personal benefits to the employee created by getting an appropriate gross profit and protecting it from waste.
  • Recognize and work with internal customers to better serve the external customer.
  • Be aware of changes in distribution that impact the manner in which distribution employees do their jobs.
Measurement: 
The course includes a number of Practical Application Exercises designed to help the learner develop a better understanding of specific concepts. The manager should let the learner know at the beginning of the course that he or she considers these PAEs important and will review the learner’s work on each of them. The PAEs included in The Business of Distribution are:
  • Increased gross profit from inside and outside salespeople.
  • Fewer picking/shipping errors.
  • Greater department-to-department cooperation.


    •

Reinforcement: 

Management can reinforce the skills taught in this course by:

  • Measuring and publishing order entry and shipping statistics.
  • Measuring and publishing gross margin trends against objectives.
  • Measuring and publishing expenses against budget.
  • Rewarding efforts that reduce expenses or increase productivity.
    .

Management Involvement:

The course includes a number of Practical Application Exercises designed to help the learner develop a better understanding of specific concepts. The manager should let the learner know at the beginning of the course that he or she considers these PAEs important and will review the results of each one with the learner. The PAEs in the Inside Sales course are:

  • 2003_1_3 — Asks the learner to note how his or job adds value for the customer, the manufacturer or both.
  • 2003_1_5 — Asks the learner to list what each department must do to honor the core contract with the customer.
  • 2003_1_6 — Asks the learner to identify one internal customer and to discuss with that customer how the learner could improve his or her service to that customer.
  • 2003_2_3 — Asks the learner to calculate gross profit, gross margin and/or markup on several problems. Click here to print the answers for the this Practical Application Exercise.
  • 2003_2_7 — Asks the learner to note three or four things that he or she can do to reduce the waste of resources caused by mistakes.
  • 2003_3_1 — Asks the learner to note several ways that your company reduces costs and improves processes for your customers.

Center for Distribution Education
2300 Henderson Mill Rd., Suite 312

Atlanta, GA 30345