Development of Distributor Management in a Finnish Biotechnology Company
Hilvo, Maria (2022)
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202203173651
https://urn.fi/URN:NBN:fi:amk-202203173651
Tiivistelmä
The aim of this study was to create a development plan for a Finnish biotechnology company to improve their distributor management practices. The study included a literature review and a thorough analysis of the current status of distributor management in the target company. Based on findings from these analyses, a detailed plan for development and new working processes was designed.
The target company has been actively involved in export business for decades and they are a globally well-known performer in their field of expertise. However, as the product lifecycles have got more mature, distributor relationships have stabilized, and market environment has changed, it has come out that the distribution channel is not working optimally. Therefore, this thesis project was established to find out targets for development, and to optimize the sales performance for future needs.
The analysis of the current distributor management process and channel performance was carried out through interviews of the target company’s salespersons, a small-scale e-mail survey for distributors, and analysis of internal sales data. The main findings of the analyses were that there are many good elements in the distributor management practices and distributors are mainly happy with the collaboration, but there is room for development. The development work should be targeted especially to the distribution channel strategy and building of commitment among distributors, but processes for distributor selection and evaluation could also benefit from updating.
Based on the findings from the current state analysis, a development plan was created. The plan consists of four elements: distribution strategy, distributor search process, distributor evaluation process, and building of commitment. The biggest changes compared to the current practices are targeted to the distribution strategy development, and all other elements are based on that. Thereby, the implementation of the development plan should be started from the strategy process. The implementation work should be done carefully to guarantee commitment of personnel and distributors. The findings of this study contain confidential information and the details are therefore partially shown as confidential appendices, which are excluded from the public report.
As a conclusion, it can be said that the target company would benefit from a well-structured distribution channel strategy and new channel management processes based on that. With a clear strategy and optimized processes, it is possible to get the best out of the distribution channel and improve sales results.
The target company has been actively involved in export business for decades and they are a globally well-known performer in their field of expertise. However, as the product lifecycles have got more mature, distributor relationships have stabilized, and market environment has changed, it has come out that the distribution channel is not working optimally. Therefore, this thesis project was established to find out targets for development, and to optimize the sales performance for future needs.
The analysis of the current distributor management process and channel performance was carried out through interviews of the target company’s salespersons, a small-scale e-mail survey for distributors, and analysis of internal sales data. The main findings of the analyses were that there are many good elements in the distributor management practices and distributors are mainly happy with the collaboration, but there is room for development. The development work should be targeted especially to the distribution channel strategy and building of commitment among distributors, but processes for distributor selection and evaluation could also benefit from updating.
Based on the findings from the current state analysis, a development plan was created. The plan consists of four elements: distribution strategy, distributor search process, distributor evaluation process, and building of commitment. The biggest changes compared to the current practices are targeted to the distribution strategy development, and all other elements are based on that. Thereby, the implementation of the development plan should be started from the strategy process. The implementation work should be done carefully to guarantee commitment of personnel and distributors. The findings of this study contain confidential information and the details are therefore partially shown as confidential appendices, which are excluded from the public report.
As a conclusion, it can be said that the target company would benefit from a well-structured distribution channel strategy and new channel management processes based on that. With a clear strategy and optimized processes, it is possible to get the best out of the distribution channel and improve sales results.