In previous post i talked about the problem in the Inventory management and their relevance. Now I will be talking about the issues in the distribution channel, when a product is not accessible to the consumer despite of huge demand. I observed that even most trusted and reliable brands are unable to fulfill the requirement of some consumers. Talking about the Dabur’s REAL JUICE, demands is incredible but supply is limited and retailers are cursing the distributors of being partial. What can be the problem?
- Distributors are unable to fulfill the need
- Communication gap between the channel members
- Failure to forecast the demand of the product
- Producers can not provide the demanded quantities because of certain limitations
- Limited supply of Raw Material
- Limited production capacity of the plants
- Limited availability of the Labor
Like every time, this time also I will leave the question wide open but provide my opinion. As per my understanding it’s either the constrain of limited production capacity or availability of the raw material. Since abundance labour is available, big brands like Dabur can not faulter in demand forecasting, and distributors will not entertain the decrease in the profit because of not providing the products.
Amazing, this is not the problem of Dabur only it is the problem of many established brands. It is not the problem of rural areas only but is problem of even metros.
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