Distribution channels - Deepstash

Bite‑sized knowledge

to upgrade

your career

Ideas from books, articles & podcasts.

Distribution channels

Indirect risks can also hide in distribution channels. It may include the inability to reach the end customers, new distribution costs or redefined business models. 

2

STASHED IN:

84

published ideas from this article:

MORE IDEAS FROM THE SAME ARTICLE

The most complex domino effect is the responses from customers.

The shift in buying patterns can create a typical cascading effect. Another is changed demand levels.

Considering the impact of a risk on a company and how it propagates through the valued chain can help management think through the change. For example, the risk posed by carbon regulation on the aluminum industry.

Risk analysis focuses all too often only on direct threats. The classic domino effects linked to supply chains include 

  • disruptions in the availability of parts or raw materials
  • changes in the cost structures of suppliers
  • shifts in logistics costs

Most companies only examine the most direct risks facing a company and tend to neglect secondary risks that can have an even greater impact.

Companies need to learn to evaluate aftereffects that could weaken whole value chains.

All differences in business models can create the potential for competitive risk exposure. This does not mean that a company should imitate its competitors, but that it should consider the risk when they have different strategies.

It is not always possible to anticipate the effects of unexpected events that occur throughout the business cycle.

But those who routinely examine the way risks propagate across the entire value chain are better prepared for second-order effects.

Discover and save more ideas by creating a

FREE

Deepstash account.

Develop a

reading habit

, save

time

and create an amazing

knowledge library

.

GET THE APP:

MORE LIKE THIS

Many companies use the insights of financial managers and external consultants to manage their risk. A one-size-fits-all solution is not yet in existence when it comes to risk management.

These companies usually use derivatives like forwards, options, swaps and futures

4

STASHED IN:

35

The DNA Of a Good Strategy

It’s time to look at your business with a fresh pair of eyes. It is time to get honest about where you are, where you want to be, and what it will take to get there.

6

STASHED IN:

44

Cost-Push Inflation

Cost-push inflation is the decrease in the aggregate supple of goods and services stemming from an increase in the cost of production.

An increase in the costs of raw materials or labor can contribute to cost-pull inflation.

1

STASHED IN:

9