Range vs Reach: Crafting an Optimal Distribution Business Strategy
In the world of distribution, leaders often face a pivotal choice: range vs reach . Should businesses widen their distribution business model by expanding product variety — or push deeper into untapped markets? This question lies at the heart of any thriving distribution business strategy . Understanding “Range” in Distribution Range refers to your product offering — the breadth of SKUs, brands, and categories you carry. Companies may focus on: A high range approach, offering a one-stop-shopping experience with a wide array of products. A specialized, low-range strategy, focusing on top-performing items. Benefits of high range: More reasons for retailers to choose your business Increased basket share with each customer Broader appeal to varied consumer needs Drawbacks include: Tied-up capital due to slow-moving SKUs Warehouse complexity and operational inefficiencies Overload for sales reps, leading to scattered efforts...