Albeit Numorpho Cybernetic Systems (NUMO) is not in the business of distribution, understanding the logistics of warehousing, transportation and fulfillment is paramount in the progression of our Everything Connected theme.
Distribution entails making a product available for purchase by dispersing it through the market. It involves transportation, packaging, and delivery. Distribution is fundamental to a company’s sales. A distributor is defined as someone who purchases products, stores them, and then sells them through a distribution channel. They are in between manufacturers and retailers or consumers, working on behalf of a particular company as opposed to representing themselves. Usually, distributors partake in collaborative relationships with clients and manufacturers.
At a recent Lunch & Learn conducted by mHUB mentor Mark Litton showcased how he grew his business from a localized distribution center in the Chicagoland area to a nationwide fulfiller. For scaling distribution nationwide four items are key:
- Goal Setting
- Sales and Marketing
Utilizing the Engagement Structure from Muse Headquarters and real examples of his interactions with the different stakeholders. Figuring out the niche market opportunity were key to his success in making Howard Medical Company achieve and surpass their goals and help maintain their cadence for the next subsequent years to come.
“You never need money until you need money” and as startups in mHUB’s ecosystem and outside it is important for us to those four items stated by Mark so that there is a proper progression from prototype to production, marketing and fulfillment.
Since Mark acquired the company, his goal was to build up the company based on its current basis and exit when it becomes a optimal running model. He has some very interesting feedback when it comes to acquisition strategies – why being altruistic is very important in such cases especially when you are going to asssume somebody else’s baby. Setting an end goal for a running business is also important since it makes progression towards that goal manageable.