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Distributor Network Optimization
The process of refining the distribution network to improve efficiency, coverage, and profitability.
Implications
The process of refining and improving the structure and performance of a company�s distributor network to maximize efficiency, coverage, and profitability, often involving the evaluation and adjustment of distributor partnerships and territories.
Example
Example: A clothing brand undertakes network optimization by consolidating its distributors in overlapping regions, reducing redundancy and improving service levels across its key markets.
Related Terms
Different from network expansion, which focuses on growth, optimization focuses on improving the efficiency and effectiveness of an existing network.
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