In order to maximise business potential to best meet customer expectation, channel partners need to take into consideration every aspect of multi-degree stock movement, by incorporating a variety of different models for stocking inventory closer to market. Models that deliberate on essential factors of inventory management such as, the nature of the product in terms of its stocking condition and shelf life, product movement criteria that helps to determine the most efficient and productive methods of distribution, besides commercial productivity in order to earn higher margins.
These factors are integral for optimization of inventory distribution, but often cost of capital varies per distribution partner, which could lead to unfair distribution in terms of return. Hence distribution partners should ideally have the flexibility to lower investments in case of relatively higher cost of capital, or increase investment in order to yield higher returns.
Through the eXchange channel partners gain the visibility necessary to control such scenarios enabling higher confidence throughout the entire distribution network, as channel partners can decide the level of risk they want to take on, inherently increasing their risk appetite and hence control on multi-degree consignments. Channel partner can realign their entire distribution through altered consignment models to maximise their margin, and overall supply assurance.