Understanding Sales & Distribution Process

Do you know that a great product can still become a weak business? Not because customers don't want it. Because customers can't find it. I see many entrepreneurs spending months improving their product, packaging, pricing and branding. But I ask them one simple question: “Aapka product customer tak consistently pahunchega kaise?” That's where the real scaling problem often begins. I strongly believe: Product is King. Distribution is the Kingmaker. While working with our clients, I use a 9–8–11 Distribution Framework: 9 ways to FIND distributors. Retailer references, industry associations, trade shows, competitor networks, local sales representatives, digital leads and other market channels. But distributor mil gaya doesn't mean distributor sahi mil gaya. So next comes: 8 parameters to FILTER them. Market coverage. Selling capability. Delivery capacity. Portfolio fit. Financial strength. Retailer network. Market credibility. Technology readiness. Why am I so particular about selection? Because a wrong distributor doesn't only reduce sales. He can block inventory, delay payments and disrupt your cash flow. Finally: 11 strategies to FUEL their growth. Give them territory clarity. Show them ROI. Create performance-linked incentives. Train their teams. Support their marketing. Recognise top performers. And continuously take market feedback. When we applied these principles with our clients, the objective wasn't simply to increase the number of distributors. It was to build a network that could improve market reach, inventory movement and ultimately the financial health of the business. Because distribution isn't about finding someone who can buy your stock once. It's about building a partner who has a reason to sell it again and again. So before spending more on advertising, ask yourself: Do I really have a product problem or a distribution problem? #DistributionStrategy #BusinessGrowth #Entrepreneurship #DrVivekBindra #BadaBusiness

First-time founders obsess over product. Second-time founders obsess over distribution. Series A founders have learned the expensive way that even the best product dies without distribution. I see this pattern regularly. A pre-seed founder shows me their beautiful product roadmap, their technical architecture, their feature wishlist. Then I ask about their buying groups. Blank stare. "We're targeting enterprises." Which department? Who signs? Who blocks? Who influences but never appears in meetings? Distribution isn't just sales. It's understanding the invisible org chart that determines whether you get paid or get ghosted. When you're expanding into new markets, this multiplies. Your US enterprise buyer and your German enterprise buyer aren't the same person. They don't have the same budget cycles, decision criteria, or risk tolerance. Second-time founders get this. They know product-market fit means nothing without buyer-market fit. They map buying groups before building features. They understand that distribution determines everything - your pricing model, your support structure, even your product priorities. Want to test your distribution thinking? Answer these: - Can you name the exact job title of your champion? - Do you know who can kill your deal without ever meeting you? - Have you mapped the informal influence network, not just the org chart? First-time founders build what users love. Second-time founders build what buyers approve. The gap between those two? That's where most startups die. — 👋 I'm Monia, and I help founders navigate buying groups across borders without burning their runway. 🔔 Follow Monia 🌍 ✈️ for battle-tested insights on turning market entry into revenue.

(FMCG Blueprint) Distributor ROI in GT FMCG: The Reality Show Welcome to the Great Indian Distribution Circus, where the distributor is the ringmaster (but often feels like the clown), FMCG companies act as lion trainers, and retailers perform acrobatic credit tricks. Let’s break down Distributor ROI (Return on Investment) in FMCG—without the corporate jargon, just reality. 1. Gross Margin (a.k.a. “The Carrot”) Distributors earn 3-6% on high-rotation FMCG categories and 8-12% on premium products. Example: If sales are ₹1 crore/month at a 5% margin, that’s ₹5 lakh gross earnings. Sounds good? Hold on. 2. Overheads (a.k.a. “The Money Drain”) • Warehouse Rent: ₹50K-₹2L • Manpower: ₹1.5L • Fuel & Delivery: ₹50K • Miscellaneous: ₹30K Total: ₹3L+ per month. Reality Check: Net earnings shrink from ₹5L to ₹2L. 3. Credit & Outstanding (a.k.a. “Retailers’ Interest-Free Loan”) • Retailers take 14-30 days credit. • ₹1 crore monthly sales → ₹30-40L stuck in credit. • Meanwhile, FMCG companies want advance payments. Distributor = Human Bank Without Interest. 4. Sales Incentives (a.k.a. “Almost Achieved Targets”) • “Buy 100 cases, get 5 free”, or “Hit ₹1.2 crore sales for ₹50K bonus”. • Distributor hits ₹1.19 crore → “Better luck next time!” Pain = Infinite. 5. Working Capital (a.k.a. “Bank Loan Trap”) • Most distributors use bank CC loans (11-14% interest). • If ₹50L loan → Monthly ₹50K interest. Distributor: “Wanted ₹2L profit, but ₹50K gone to the bank.” 6. Competition (a.k.a. “Too Many FMCG Brands, Too Little Margin”) • If a distributor handles HUL, ITC, Nestlé, Dabur, all brands demand focus. • Price wars + discounts = Shrinking margins. Distributor: “Pushing products or playing chess?” 7. Expiry & Returns (a.k.a. “Silent Killers”) • Expired goods → Distributor’s loss. • Retailers demand replacement. • Company says: “Plan better next time!” Distributor: “Zindagi expiry pe chal rahi hai!” 8. Final ROI Calculation Assume: • Sales: ₹1 crore/month • Gross Margin: 5% = ₹5L • Expenses: ₹3L • Credit Loss/Interest: ₹50K • Schemes & Returns: ₹50K Net Profit: ₹1.5L/month (~₹18L/year) ROI = (₹18L ÷ ₹1.2 crore) × 100 = ~15% annually Final Verdict: FMCG Distribution or Real Estate? ✔ Good Distributors earn 15-20% ROI. ✔ Smart Distributors buy real estate instead. Distributor: “Pehle bada business socha tha, ab kirana kholne ka mann hai!” Still want to be a GT FMCG distributor? Only if you love negotiations, credit recovery, and daily stress.

SAP Sales and Distribution (SD) process. Part-1 The standard end-to-end process in SAP SD is known as the Order-to-Cash (O2C) cycle. It covers all business steps from receiving a customer's order to collecting the payment for the delivered goods. Here is the step-by-step flow of the O2C process: 1. Pre-Sales Activities (Optional) This phase involves managing initial customer contacts and tracking potential sales. Inquiry: A customer's request for information about products or services, such as price and delivery dates. It does not have any legal or financial obligation. Quotation: A legally binding offer sent to a customer, valid for a specific time, which includes defined prices, quantities, and terms. 2. Sales Order Processing This is the core step that triggers the entire sales process. What happens: A sales order is created (e.g., using transaction VA01) when a customer agrees to the quotation or places a new order. Key Actions: Customer and material details are recorded. Pricing is automatically determined. An Availability Check (ATP) is performed to see if the material is in stock and can be delivered on the requested date. Credit Check: The system verifies the customer's credit. 3. Shipping & Transportation This phase covers all logistic activities, from preparing the goods to sending them to the customer. It is triggered by the sales order. a. Create Outbound Delivery: What happens: A shipping document (Outbound Delivery) is created (e.g., VL01N), which authorizes the warehouse to prepare the shipment. It contains details about the shipping point, quantities, and delivery date. b. Picking: What happens: Warehouse staff physically pick the goods from their storage locations based on the delivery document. c. Packing (Optional): What happens: The picked goods are packed into appropriate shipping containers (boxes, pallets), and handling units are created. d. Post Goods Issue (PGI): What happens: This is the most critical step in logistics. By posting the goods issue (e.g., VL02N), the company legally transfers ownership of the goods to the customer. System Impact (Key Integrations): SD: The status of the delivery document is updated to "completed." MM (Inventory): The stock quantity of the material is reduced. FI/CO (Finance): The system posts the Cost of Goods Sold (COGS), which is an expense, and updates the inventory asset account.

Basics of FMCG Sales Force Management: In FMCG success depends not producing quality products but also ensuring constant availability and visibility across the all outlets. Sales Force Management (SFM) ensures the right products are in the right place, at the right time and at the right cost. Understanding these fundamentals sets the stage for mastering effective sales force management summerized as follows:- 1️⃣ Route to Market (RTM): It defines how products flow from factory to shelf. Steps to Build RTM: - Segment the market (A, B, C outlets by potential) - Select the channel mix (Direct for big outlets, distributors to smaller ones) - Allocate clear territories for reps to avoid overlap - Plan daily routes with clear number - Set visit frequency (High value outlets = more visits/week) 2️⃣ Sales Planning & Forecasting: Planning in FMCG is predicting demand accurately & aligning resources to meet it. Forecasting Techniques: - Analyze historical data, adjust to seasonality, factor in promotions and new launches Target Setting: - Break down targets into region, territory, reps and SKU level - Use SMART goals 3️⃣ Performance Management & KPI: Monitoring the performance ensures accountability & productivity. Key KPIs in FMCG: - Sales volume per rep - Outlet coverage (% visited vs planned). - New outlet activation - Order fill rate (% of orders delivered fully) - Merchandising compliance (% stores following display standards) 4️⃣ Motivation & Incentive Schemes: Motivated reps have a higher sales & better execution. Incentives must be simple, transparent & timely; delays demotivate. Monetary Incentives: - Commission for hitting target - Quarterly/annual bonuses - Extra rewards for new launch Non Monetary Rewards: - Recognition (salesperson of the month) - Career growth & training trips - Certificates, badges, trophies 5️⃣ Channel Management & Distributor Relations: Distributors are the extended sales arm; managing them well is very critical. Selecting Distributors: - Financial health, storage capacity, delivery fleet, market reputation - Ability to invest in inventory & credit Managing Relationships: - Clear agreements on pricing, margins, credit terms & territories - Monthly performance review & joint business plans 6️⃣ Merchandising & In Store Execution: Shelf space is the key factor to most purchase decisions happen at the point of sale. Standards: - Correct planogram (product placement) - Price visibility & promotional signage - Out of stock prevention to fast moving SKUs Execution Practices: - Sales reps take photos - Supervisors review compliance weekly - Special displays for new launches or seasonal campaigns KPIs: - Share of shelf (% occupied vs. competitors) - On shelf availability - Display compliance In summary, sales force management is both an art and science. The art is leading, inspiring and motivating diverse teams and the science is structuring, planning, measuring and optimizing execution.

Your product is one of thousands they carry... Their reps will pitch whatever is easiest to sell and whatever customers already ask for by name. If that's not you, you're not getting sold. Doesn't matter how good the product is. Most manufacturers blame the distributor. The real problem is almost always the system around it. 8 reasons your channel isn't performing, and what to fix: 1. Their reps can't explain what you sell If they can't pitch it in 30 seconds, they won't try. A spec sheet at onboarding isn't training. 2. There's no incentive to prioritize your line Loyalty follows money, not relationships. Spiffs, rebates, and co-op funds tied to volume change behavior. 3. End customers have never heard of you When a buyer asks for "a product like X," reps recommend whoever comes to mind first. Build pull-through demand directly with end users. 4. You trained them once. Distributor teams turn over ~30% a year. The rep at your launch event is gone. Keep showing up, quarterly at minimum. 5. Getting support from you is slow A ready buyer plus a slow quote equals a lost deal. Be the easiest call they make all day. 6. You don't know which reps are actually selling Top 20% drive almost all volume. The other 80% are never developed. Get rep-level data. 7. Your margins are too thin If there's no room to negotiate, they'll push something else. You'll never even hear about the deals you lost. 8. You treat all distributors the same 8 great partners beats 40 mediocre ones. Tier your channel and invest accordingly. Fix the system. The sales will follow. What's the one most people get wrong? 👇 ___________ If you're struggling to generate the right leads, I share how to in my weekly personal newsletter, join for free here: Sign up here → https://lnkd.in/eRXtjQ_C

Sales are predictable, only if you have the right people and playbook. Here's part of my playbook after helping guide 12 companies to unicorn status: Most startups struggle with sales not because their product isn’t great. But because they’re winging it instead of following a proven process. Here’s the process I’ve used to scale 1 in every 5 companies I've worked with to unicorn status or 9-figure exits. Step 1: Be clear about your ICP Most startups think their audience is "everyone." Wrong. - Who has the biggest pain that your product solves? - Who has the budget and urgency to buy now? - Who will refer you to others after buying? - Who is easiest to get ahold of? Pro tip: If your sales team is chasing everyone, they’re closing no one. Step 2: Fix your sales messaging If your pitch sounds like everyone else’s, your prospects zone out. Don’t say “We’re an innovative AI-powered solution…” Instead, lead with outcomes. ❌ “We help companies streamline operations.” ✅ “We helped Scott cut CAC by 37% in 60 days. Any reason you couldn't get similar results?" Buyers don’t care about your product. They care about how it fixes their problem. Step 3: Build a repeatable sales process. If you don’t have a process, you have a guessing game. Here’s what I set up: - Outbound Sequence – Cold outreach that feels warmed up - Inbound Strategy – Attract buyers to you through content - Go To Network Strategy - Get intros to the interested - Sales Stages – Steps from discovery to close - Follow-Up – “No” is better than nothing Sales should feel like a well-rehearsed dance, not an improv session. Step 4: Data-driven sales execution Gut feelings don’t scale. Data does. We track: - Conversion rates at every stage - Sales cycle length - Top-performing reps (What are they doing differently?) The fastest-growing startups aren’t guessing. They’re iterating based on numbers. Step 5: Optimize & scale A great sales strategy isn’t set in stone, it evolves, so revisit every 6 months. - Are deals stalling? We learn why. - Are leads ghosting? We refine messaging. - Is the close rate dropping? We help fix it, quickly. Sales isn’t magic. It’s a system. Build the system, and the revenue follows. If your startup’s sales feel random instead of codified, it’s time to get serious. DM me, let’s build a sales engine that actually works.

What actually happens after a brand lands a major distributor? That’s the question we get into with Mark Chaplin, President, Commercial Sales at Southern Glazer's Wine & Spirits on Business of Drinks. It’s rare to get this kind of look inside the distributor tier, especially from the largest wine and spirits distributor in the U.S. According to Shanken’s Market Watch, Southern Glazer’s generates an estimated $25.2 billion in annual sales revenue, services more than 250,000 on- and off-premise accounts, and operates across 47 states. That scale makes this conversation especially useful for anyone trying to understand what happens once the PO is signed, the product is in the warehouse, and the brand needs to turn. TL;DR - Distribution is not the finish line; it’s when the tough work starts. We get into the operational realities suppliers often underestimate, including returns, wrong orders, stockouts, wasted trade spend, chain authorization cycles, convenience channel requirements, and on-premise economics. And we discuss how the distributor salesperson’s role changing. It's no longer just about relationships or order-taking. With data, B2B platforms, and tools like Southern Glazer’s Proof, the sales call is moving toward strategic consultation: Where should this brand show up, where can it turn fastest, and what does the account actually need? Among the many takeaways for emerging brands: The goal is not just to get into more accounts. The goal is to be in the right accounts, with the right plan, at the right velocity. That may sound simple, but it’s not easy. Listen in 👇 #BusinessOfDrinks #BeverageAlcohol #ThreeTierSystem Business of Drinks Scott Rosenbaum

A yes is not distribution. I’ve watched founders pop a bottle over their first distributor order. I’ve done it myself. The distributor said yes. The PO came through. For about a week, it felt like the hard part was finally behind us. Then the reorder never came. That’s ghost distribution. Your brand is technically “distributed.” It’s sitting in a book. It has a price. Maybe there are a few cases in a warehouse. But nobody is actually selling it. Close to four decades in this business taught me something I wish somebody had told me earlier: The distributor’s yes is the starting line. They didn’t buy your brand. They bought the opportunity to see if you can build demand for it. What happens next is the business. Drive 90 minutes for a five-minute meeting. Get the no. Come back Thursday. Train the staff. Then train them again because half the crew changed. Fix the shelf tag nobody noticed. Buy the bartender a coffee instead of another drink. Then do it again. 40 accounts. Week after week. For 52 weeks. None of that is glamorous. Most of it will never make LinkedIn. But it’s what separates the bottle that gets reordered from the two beside it collecting dust. The brands that win aren’t always the best liquid on the shelf. They’re the brands somebody refused to stop showing up for. Not the launch. Not the label. Not the distributor announcement. The going back. So if you just got your yes, celebrate it. Then build your plan for the next 52 weeks. Because that’s where you find out whether you built a brand… or just earned a listing. What did your first reorder actually cost you? Truthfully, Sam #BeverageIndustry #BrandBuilding #Distribution #BeverageBrands #Sales FRONTLINE BEVERAGE

Many salespeople get this dead wrong. They start with cold outreach - sequences, DMs, emails, cold calls… But if you haven't nailed the other 3 layers below that, you’re not doing sales... you’re playing the lottery. Here’s the real order of operations if you want predictable pipeline: 🎯 01 Focus Who are we selling to? ✔ ICP definition ✔ Key roles in the buying process ✔ Buying triggers & decision criteria ✔ Industry-specific motion If you're not crystal clear on this, everything above it falls apart. 🧭 02 Positioning Why would they choose us? ✔ Pain points that matter ✔ Clear ROI metrics & value props ✔ Proof you’ve solved this before ✔ Impact of doing nothing This is where most deals are won or lost - before a single call even happens. 📂 03 Pitch What do we say to earn trust? ✔ Talk tracks that resonate ✔ Smart discovery ✔ Objection handling baked in ✔ Stories & customer proof It’s not about your product. It’s about showing you understand their world. 📬 04 Outreach How do we reach them? ✔ Warm intros ✔ Exec alignment ✔ Multithreading ✔ Cold outbound (done right) Don’t start here. Start at the bottom. Build a system that works in any market, not just when leads are hot. If you liked this, you’ll love SalesDaily, where I curate what’s actually working for top reps, managers, and teams. ✔ Battle-tested tactics ✔ Cold email & call frameworks ✔ Daily insights from real sellers Sign up here: https://lnkd.in/gDwCegjS