BDC publishes guide to creating an international distribution plan

The Business Development Bank of Canada (BDC) has published a guide aimed at helping businesses establish an effective international distribution plan. The resource emphasizes the critical role of selecting the right distribution partners for export success.

The guide advises companies on identifying suitable distributors that align with their business objectives and growth strategies. Sandra Coffey, an advisor with BDC Advisory Services, highlights that distributors can significantly boost sales and improve inventory management, but choosing the wrong partner can lead to underachieved targets.

BDC outlines the advantages and disadvantages of working with distributors. Utilizing distributors can be beneficial for novice exporters due to their existing networks and market knowledge. Downsides include sharing profit margins and relinquishing some control over branding and distribution. Direct sales, particularly online, offer more control but necessitate strong logistics capabilities and can be resource-intensive in new territories.

The publication also suggests considering a multi-channel approach that blends direct and indirect sales methods. This strategy can help companies reach a wider customer base and maximize revenue across different product lines and market segments.

BDC provides practical tips for successful collaboration with distributors. It recommends seeking partners with a proven track record in the industry, a thorough understanding of the company's products, and shared business goals. Factors such as sales performance, customer service, inventory management, and overall reputation are presented as key evaluation criteria.