Sephora sales forces and channel distribution audit – firm’s existing sales and distribution channel(s) Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

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1. SUGGESTIONS FOR IMPROVEMENT OF THE SALES FORCE AND CHANNEL DESIGN

a) Tips for managing effective distribution networks:

· Synchronizing the top management

In order to capitalize on their distribution network, Sephora needs to involve and engage every member of supply chain in an integrated manner. This is not a wait at all and observes the technique that needs to be employed at an initial level. Employing enterprise resource planning modules to the supply chain Sephora can achieve efficiency in their lead times, inventory management and replenishment costs (Kotler, 2012).

· Supply chain Transparency

Sephora needs to ask its members of the causes of delays and excessive stocking and make sure that they speak the truth. By bolstering their confidence in the management, they can gain valuable insights about why the operations are weak. It tries to answer the question, is there any malfunctioning at manufacturer’s end or somewhere else in the supply chain. In addition to the assessment of the supply chain at present, Sephora must also conduct a strategic analysis of the options. For example, to what extent the lead time should be minimized that can help Sephora to achieve the anticipated sales in a given market? Evaluating the alternatives before implementing them straight right will help Sephora in lowering their operational efficiencies on one hand and on the other help Sephora to boost its sales (Paul H 1998).

· Networking Model Tool

The use of a networking molding tool such as in house logistics and data management will help Sephora to save costs associated with outsourcing; as at present they are using indirect distribution. However, Sephora can outsource this networking model form a vendor but make sure it’s done without customizing the software to its needs as this mighty distort functioning of the tool itself. Therefore, pre-hand assessment of the tool will help them assure its applicability to the Sephora’s needs (Shusterman, 2014).

· Customer Service Management

The distribution network moves on up till the customer does not receive the product. The last channel is the point of sale. Therefore, the sales representative in this industry needs excessive training to deal with the customers and make sure the product sell due to its unique qualities. Due to this, Sephora needs to train its employees extensively (Kotler, 2012).

b) Suggested Sephora’s Distribution Channel Plan

· Analyze Business Issues and form an Integrated Team

The analysis of insurmountable data from the past using state of the art database and network optimization software will help Sephora to achieve meaningful insights on its inefficiencies in detail. The development of an integrated motivated team for the distribution management at Sephora needs to be constructed. From each department, functional teams need to be generated. Each of these functional teams needs to collaborate with each other on the issues of transportation, finance, information system, data management along with marketing and logistics. When all of these will work in a synchronized manner, then Sephora can achieve its distribution efficiency. The implementation of the ERP module will help Sephora in gaining transactional pace and up-to-date-record. Moreover, the just in time information on every department will help Sephora to manage its supply chain competitively (Shusterman, 2014).

· Go for Inside Baseline Model v/s Outsourced Model

Once the data has been accumulated from all the portals, whether manual receipts or the data gathered at Sephora.com, Sephora needs to calculate its store business cost for e.g. inbound and outbound freight costs, the cost to operate the ware house, the shipment freight and the store maintenance costs. Using the current distribution network, Sephora needs to allocate costs for each function in the distribution network.

· Generate Logistics Objectives and Identify Logistic Modeling Scenarios

Generate logistic objective in terms of SMART goals in order to achieve the goals that need to be specific, measurable, attainable, realistic and timely. As Sephora sees that customers are expanding day by day, therefore, it needs to prepare a budget for 10 years along with specification for each member. For this they need to develop modeling scenarios for logistics or to identify already established successful models that will help Sephora to flourish in its industry.

· Evaluate the alternatives

Sephora needs to evaluate about which logistic model it wants to implement, and whether the implementation will help it achieve lower lead times and inventory levels. In addition to this, the model chosen by Sephora needs to be one that helps it to capitalize on operational efficiencies. As customer expansion at Sephora is increasing; therefore........................................

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