Why and how to set up an international distribution network
In an increasingly globalised and transforming world, companies looking to expand their presence in world markets often see an international distribution network as a key asset. This distribution strategy can have many benefits for companies, whether they operate in manufacturing, retail, services, or other sectors. But how can this development be achieved successfully, while maintaining quality of service and corporate image and limiting distribution costs ? Aramine reveals its choices and its current strategy in terms of international distribution networks.Thus, Stefan Ischi has been appointed as Head of Distribution Network, effective August 1st. In this role, Stefan has the overall responsibility to further develop and to stimulate Aramine’s global Indirect Sales footprint.
What is an international distribution network ?
A distribution network is a set of channels and partnerships determined by a company to market its products or services abroad. The main aim of such a network is to facilitate sale and distribution of machines, parts and service to international markets.
What distribution strategy should you choose ?
This type of network often involves putting in place various strategies and operational structures tailored to the specific requirements of the needed markets targeted. Building an effective distribution network requires a thorough understanding of international trade regulations, consumer needs and behaviour in target markets, as well as the complex logistical considerations involved in exporting products on a global scale.
In particular, Aramine has chosen to invest locally by building strong partnerships with nearly 100 distributors around the world and 5 subsidiaries : Aramine Mexicana, Burkina Faso, Poland, Armenia and Niger.
What are the advantages of an international network distribution strategy ?
Many companies have opted to set up a network because it gives them access to new markets and helps them increase their sales while diversifying the areas in which they operate.
This network will enable them to be close and responsive in consumers proximity. This local presence makes it possible to respond to specific needs while maintaining the required level of quality. What’s more, this export development strategy helps to reduce the company’s carbon footprint, in line with sustainable development policies.
It also means acting locally and supporting local economies.
Finally, it will enable the company to provide services such as maintenance and after-sales service, while reducing transport costs.
How to define its international distribution network
Choosing an international distribution network is a crucial step for any company looking to expand abroad. What are the right decisions to make when building a successful international distribution network?
- Assess your target markets,
- Make sure you understand your customers’ needs.
- Evaluate the different distribution options available abroad
- Choose partners and local contacts carefully
- Build an effective logistics strategy
- Adapt products and services to comply with local regulations.
- Plan and implement your network gradually and do not try to cover all international markets at the same time.
- Measure and adjust by constantly monitoring the performance of your international distribution network.
Aramine selects its distribution network on the basis of well-defined criteria such as their knowledge of the local market, their proximity to customers and trade compliance.
As a genuine lever for the company’s development, Aramine is investing more in its network in 2023 and now formalises certain partnerships in order to make them more efficient and accelerate their development.
The most dynamic distributors will be encouraged, trained and supported in an evaluation process in order to be certified as official Aramine distributors. This programme will enable this VIP network to obtain exclusive advantages. A real loyalty policy.
Conclusion
In short, an international distribution network offers many advantages for companies looking to extend their reach beyond national borders. It offers access to new markets, stimulates sales growth, reduces risk, optimises production costs, promotes sustainability, and strengthens the brand. However, it is important to note that managing an international distribution network also brings challenges, including the need to understand local markets and regulations. Nevertheless, for many companies, the advantages far outweigh the disadvantages, making the international distribution network a major asset in today’s global economy.
Stefan Ischi – Head of Distribution Network
The mission entrusted to Stefan Ischi contains 3 focus area’s :
- Existing Distributors/Subsidiaries to actively manage and to motivate to achieve set targets
- Expanding Distributor/Partner network through optimizing and improving the footprint
- Subsidiaries (Aramine Regional Service Centers) to increase presence and to boost business opportunities in targeted markets
Stefan brings 35+ years experience from the mining & construction industry whereof 25 years from Atlas Copco/Epiroc and 16 years as Expat. He has worked in different global marketing & sales roles in Switzerland, Sweden, China and Thailand where always Indirect Sales/Distributor management was a major business development area. Most recently Stefan was global Indirect Sales Manager in Epiroc. Prior to joining Atlas Copco/Epiroc he was site manager for civil and underground engineering projects for a large Swiss contractor. Stefan’s extended distribution experiences, track record and his passion for innovative marketing makes him well suited to take on this new challenging mission in Aramine. Stefan currently is based in Sweden paired with presence in Aix-en-Provence and intensive international travelling.
Please welcome Stefan to Aramine and wish him great success in developing the Distribution Network.