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هلدینگ مهر | Mehr Holding

Basic points in the food distribution industry

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Published in: دسته بندی نشده
_Examining the problems and necessities of financial management in food distribution companies
_Investigating the limitations of commodity supply management
_Challenges in the distribution channel and adopting the correct method in improving the sales process
Examining the problems and challenges of financial management in food distribution companies

Capillary distribution companies active in the food distribution industry may operate as agencies, independent branches, or non-independent offices. Based on the type of activity, problems and margins of activities of related units are also determined. Among the major problems in the financial management of broadcasting companies are:

Control of customer debt status
Strict supervision in accepting and receiving checks from customers
Customer credit control and checking the credit threshold of each customer
Examining the supply basket of sellers or distributors
Examining the portfolio of best-selling, medium, and low-selling products

In the financial management of a food distribution company, the way of accounting plays a very important role in determining the profitability of the organization's activities, considering the increasing importance of information and data control in order to recognize the correctness of the organization's movement path. Due to the mechanization or non-mechanization of food distribution companies with advanced equipment and logistics, the costs of warehousing and maintaining and distributing goods are also being done at a different cost. The decrease in the profit margin of food distribution companies, due to the increase in distribution and distribution costs, has added to the increasing importance of controlling work processes and realizing the profitability of activities. The need to pay attention to financial management is proven in the food distribution company when they realize the depth of their losses after a year of operation.This is if the amount of loss can be managed by determining the internal accounting indicators and controlling the border of the indicators

Company losses can be caused by the following reasons:

Increase in stored products
Reduce date
Increase in storage costs
Waste from maintenance
Stopping capital due to slow product sales

Examining the limitations in managing the supply of goods

Before examining the existing processes in supply management, we must give a detailed introduction to this activity. The supply chain is a network of processes, so that their ultimate goal is to provide goods and services to customers and includes suppliers, manufacturers, distributors, wholesalers and retailers, which together, as Coordinated and coherent cooperation to satisfy customers. Supply chain management is an integrated approach to planning and controlling materials and information that flows from suppliers to customers. Supply chain management is associated with inventory management with a focus on operations management and information analysis. The task of supply chain management is to manage and coordinate the various flows within it.One of the important management challenges in this field is related to coordinating the flow of materials between several organizations and within each organization. For this reason, it is necessary to use technologies and tools to track materials on the way from origin to destination and record information at each stage

This supply chain management has three main processes which are:

Information management: Today, the role and position of information is obvious to everyone. Proper circulation and correct transfer of information makes processes more effective and efficient and management becomes easier. Coordination in activities is very important in the supply chain
Logistics Management: This section includes all physical activities from raw material procurement to the final product, including transportation activities, storage, production scheduling, etc
Relationship management: This part is one of the most important topics of the supply chain and has an important impact on all areas in the supply chain and its performance level

Challenges in the distribution channel and adopting the correct method in improving the sales process of the food distribution industry

Marketing and sales managers are always looking for newer and more efficient distribution methods by examining the method of transferring goods. The right decision in this field will lead to increased product transfer speed, buyer convenience and lower cost. One of the main marketing tools is the use of an efficient distribution system. Capillary distribution is a marketing strategy that companies use to make their products widely available. Capillary distribution means concentrating all distribution efforts in one segment that includes one or more regions, which also requires a focus on marketing campaigns and customer service. Capillary distribution almost requires teams trained in product introduction and sales, to be able to:

-Introduce the product correctly
-To be able to correctly register orders and place them on the final delivery route
- Have enough knowledge to use organizational software for sales
- Know the distribution route
- Have enough knowledge of how to discount and promote the product

To distribute their products, broadcasting companies need an efficient distribution network that can bring the most efficiency and the best results. The most well-known distribution method is capillary distribution. Capillary distribution is the path that goods and services take to reach the customer, and in fact, this method is specific to companies that want to distribute their products in the entire city or country. With the help of The visitor collection and its comprehensive information help to improve the distribution of goods in the city

Capillary diffusion is possible in two ways:

Hot play and cold play
The adoption of each of these two methods is based on the type of product. In hot distribution, the distribution of products such as dairy products that have a short expiration date and for daily consumption is used, but in the cold distribution method, the seller first visits the customers and introduces the product, takes the order and issues the invoice, then on another day, the driver of the products Delivers requests to customers. This method is more applicable for products that have a longer expiration date

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