We understand the unique challenges faced by B2B distributors, wholesalers, custom-made small businesses, or multifaceted companies. They need efficient operation of the service and sufficient resources for proper internal functioning and highly customer-oriented supply of goods and services towards the market.
Our company benefits from the long-standing knowledge of this sector, state-of-the-art analytical techniques and our decision-making solutions that help us differentiate our customers. We understand what it is, a strict focus on acquiring and maintaining a customer, motivation to continually improve operational efficiency, or never ending efforts to improve your skills. Today is not enough to "be good in something", you have to "be good in everything" and the best in the most important things. We are experts in how to be successful in this environment and prove to them the unique competitive advantages and areas of further growth. Our pragmatic approach is based on the actual implementation of the required changes and the implementation of such techniques and tools, which are unique and have been tested many times over in their 20 years of existence.
Design of strategy and business model
The dynamics of the wholesale and distribution industries are very high. Customers are becoming increasingly sophisticated, supply chains are increasingly global and new technology startups are another growing threat. Successful businesses will be in the next decade the growth of impressive new types of service, breakthrough solutions and innovative approaches to managing their networks and value chains.
A successful strategy in a distribution company begins by understanding and identifying the key success factors: What customers are today profitable? How are they distributed on the market? What are the reasons why they use our services? By correctly answering these and other questions, we can lead the customer to identify and implement the right strategy.
Sale, pricing and pozitioning
Managing distribution companies is particularly difficult to manage to be commercially successful. Decisions are often made on the basis of an estimate or "averaging", although information and indicators "off-average" are significantly more important for decision-making.
Ultimately, all people who have an influence on key business decisions are trying to do things right, but the right thing can also be based on intuition. Because the price of error can be high - for example, millions of dollars often depend on decisions in the field of relatively inexperienced workers. It is therefore important to ensure that strategic decisions and plans are broken down into different service categories and equip implementation teams with the tools they need to make the right decisions. This can fundamentally affect the overall financial result without even greater investment in new IT platforms.
Mechanisms for simpler pricing with higher added value require a scientific approach to identifying customer preferences, correctly projecting cost dynamics and generating real profits. Proper involvement and motivation of sales channels is crucial to achieving change as well as setting up the right processes and tools to increase the overall likelihood of success. It's hard work, but it's worth it.
Purchasing & procurement management
Many wholesalers and distributors work with very low net margins, typically 3 to 5 percent, while yields are under constant pressure. Some companies have improved profitability by reducing sales costs by focusing on sales through several key vendors.
By adopting a pragmatic strategy that combines the best knowledge from retailers and manufacturers, distributors and wholesalers, it is possible to gain a significant advantage. Since resale goods may represent a distributor of > 80% of the cost base, more sophisticated purchasing approaches can cost 7-10%, which can double the net profit.
In the age of "smart distribution," distributors must be brave and agile in technology and must migrate from older and more cumbersome systems. Contigen brings IT competencies to this transformation, as well as practical and agile development through ContiLabs, which provide a unique and tangible support for such transformation.