DMC strategy

DMC strategy refers to the monitoring and management strategy of distributors. In terms of management and monitoring of previous distribution links, most suppliers tend to invest a lot of time and energy into the “product link”. The DMC strategy is more to manage, monitor distributors of “business links”, such as target market to invest effectively and participate in the local market operators; for distributors of sales, service and the enterprise’s production cost effectively Management, etc.

Many suppliers consider themselves to be the control center of the channel, but the actual result is often unable to effectively monitor and manage the distribution channel . The main reason for the above-mentioned problems is that corporate marketing solutions often focus only on end users (and ignore channel partners); in addition, suppliers often cannot accurately measure the profitability of channels, and instead, most suppliers measure the performance of distributors The standard is the sales volume and the amount of warehouse stock near the end of the quarter. In fact, the supplier should measure its performance based on the sales efficiency of the distributor and the added value it brings to customers .

The distribution strategy of an enterprise (supplier) is determined by the development concept of the enterprise, the ability of the enterprise to develop new markets, the management ability of the enterprise, and the tolerance of risks. For most companies (suppliers) who are eager to take advantage of global business opportunities to do business, they also need to establish corresponding functions and operating departments to fully support the corresponding strategy when making strategic decisions .

For example, if a company is determined to effectively control and manage sales, manufacturing, final assembly, channel services, and / or channel behavior, it is necessary to integrate the businesses of both parties, and the direction and degree of integration will be greatly Affects the degree of supplier monitoring and management of distributor business.

Only when the following work is carried out effectively can an enterprise (distributor) achieve effective monitoring and management of the channel: effectively invest in the target market and participate in the operation of the local market; the sales, service and cost of the distributor The manufacturing cost of the enterprise is effectively managed. Therefore, the company’s “Distributor Monitoring and Management Strategy (DMC Strategy)” is of great help to achieve high-speed growth in key markets.

In the management and monitoring of the distribution link, most suppliers tend to invest a lot of time and energy into the “product link”. In fact, more management and monitoring of the “business links” of distributors is more conducive to the expansion of business in the global market, which is the basis of the “distributor monitoring and management strategy (DMC strategy)”. The use of “DMC strategy” can exert leverage and effectively guide the allocation of resources, so as to maximize the effectiveness of customer relationships , and this strong distribution will also help both parties develop a more constructive, more profitable basis on the basis of mutual benefit. Strong partnership. By better managing and monitoring distributors’ activities that have a significant impact on sales and distribution, companies can help distributors manage their resources, funds, personnel and related resources more effectively, which helps make resources more effective. Utility.