Distribution Companies

Every sound business in distribution companies begins with one clear customer and one clear problem. In São Paulo and the wider state, demand is real but crowded, so a small, well-described customer group wins before a broad one.

• In distribution companies: List retailers by order size and delivery windows; the shortest windows decide your routes.
• Write the customer in one sentence: a retailer or maker. Add the place, the moment of need and what they use today.
• List five rivals or substitutes within reach. For each, record price, strength, weakness and how people reach it.
• Interview at least eight real customers with open questions. Record exact words, not your summary.
• Count the market in units: how many route days could one area buy in a month? Use two public sources and your own count, then take the lower figure.
• Choose one first segment and say why the others wait.

Activity. Write the one-sentence customer, a five-row rival table and eight interview records. Share them with a peer for a challenge round.

Standard to meet. Define a specific customer, build a rival table with prices, and trace every claim to an interview or a source.

Brazil asks every trader to be visible and accountable. Know which register, tax regime and sector rules apply before the first sale, and check each against the current official text.

• In distribution companies: Invoicing, tax documents and vehicle rules apply; keep proof of delivery for each drop.
• Choose a legal form: micro-entrepreneur (MEI) only if your activity appears on the official MEI list, or a company registered with a CNPJ. Regulated activities need their sector authorisation first. Check the current limits and lists on the official portal.
• Learn the tax regime that fits your size and write down which taxes you will collect and pay, and when.
• Find the sector rules for distribution companies: licences, inspections, professional registers. List each with the office that issues it and the renewal date.
• Personal data of customers falls under Brazil's data protection law (LGPD). Collect only what you need, say why, keep it safe, and name who answers questions.
• Consumer law gives buyers clear rights on information, returns and complaints. Put your terms in plain Portuguese.

Activity. Build your own six-line compliance table for your first location. Mark what is done, what is pending and who confirms it.

Standard to meet. Cite an official source for every line, assume nothing, and date every pending item. Local law always wins over this course.

An offer states what the customer gets, how well, by when and at what price. For a stock-to-shop supply service, the offer must make the quality visible and the next step easy.

• In distribution companies: Offer fixed delivery days and a minimum order that pays for the route.
• Describe the core offer in three lines: what is delivered (a stock-to-shop supply service), the standard it meets, and the time it takes.
• Add one proof for each promise: a sample, a test result, a guarantee or a customer record.
• Price from cost upward and from customer value downward, then pick a price inside both.
• Write a simple one-page terms sheet: what is included, what is extra, how to cancel.
• Create two options at most, so choice stays easy.

Longer notes. List the shops you can serve on time with the trucks and stock you have, and sketch each route on a map with the stops in order. Mark where hours vanish: a narrow street, a closed loading dock, a long queue at the supplier. Offer two service levels only, such as next-day for large buyers and twice weekly for small ones. Divide the daily route cost by stops to see cost per delivery, then set a minimum order that makes each stop pay. Write return and damage terms on the delivery note. Ask the tax office which invoice and tax rules apply to drinks and snacks before you promise a route.

Activity. Write the offer card, the proof list and the terms sheet. Test them with three customers and note every point where they hesitated.

Standard to meet. Check that promise, proof and price are consistent, fit the terms on one page, and record three customer reactions.

Good operations make results repeatable. For distribution companies, write each step so a new person could follow it on their first day, and measure each step.

• In distribution companies: Pick, load, route, deliver, collect proof, reconcile; count stock at every hand-over.
• Map the process from first contact to paid and closed. Typical stages: enquiry, quote, preparation, delivery of the route day, check, payment, follow-up.
• Name the key resource at each stage: a route plan and stock records. Note what happens if it is missing.
• Write a one-page standard procedure per stage: who, what, tool, time, record.
• Choose three measures: speed, quality (errors per 100) and customer rating. Review them every week.
• Fix the cause of a defect, not the symptom. Ask 'why' five times and record the answer.

Activity. Draw the process map and write procedures for the two riskiest stages. Run each once and time it.

Standard to meet. Write procedures a stranger can follow, record weekly numbers for each measure, and trace one defect to a root cause.

The most serious risk in this field is late or short deliveries. A calm, written risk routine protects people first and the business second.

• In distribution companies: Short deliveries, damage and driver fatigue are main risks; set limits and log hours.
• List ten things that could go wrong. Score each for how likely (1 to 5) and how serious (1 to 5). Multiply and sort.
• For the top five, choose a control: remove the hazard, replace it, guard it, train people, or use protective gear, in that order of preference.
• Write who does what in an emergency, and rehearse it once a quarter.
• Keep an incident and near-miss log. Near-misses are free lessons.
• Check that insurance and legal duties match the risk you actually carry.

Activity. Build a ten-row risk register and a one-page emergency plan. Run a ten-minute drill with a peer and note two improvements.

Standard to meet. Rank controls by preference for the top risks, run the drill, and start the log. Where a regulation applies, follow the official rule.

People deliver the promise. Define roles, train to a standard and give feedback in the open.

• In distribution companies: Train drivers and loaders on safe lifting and checking.
• Write a role card for each person: purpose, five tasks, the standard for each, and who to ask for help.
• Train by showing, doing with support, then doing alone with a check. Record sign-off per task.
• Set service rules for answering customers: reply times, tone, how to apologise and fix.
• Hold a ten-minute team check each day: yesterday's problem, today's plan, one risk.
• Build a growth path: what a new person can do in week 1, month 3 and month 12.

Longer notes. Write a job card for each post: picker, loader, driver, dispatcher, sales representative. Train pickers on sample orders and time each line picked. Load the truck in reverse delivery order and ask the loader to tick the delivery note against the boxes at the dock. Teach drivers to greet the shop owner, count the goods together and call the dispatcher the moment a delivery is refused. Choose one person to review all wrong-item cases on Monday. Rotate heavy lifting to protect backs and post the day's route on the wall at six in the morning so everyone knows what comes first.

Activity. Write two role cards and a training plan for one new hire. Role-play a hard customer conversation twice and review.

Standard to meet. Write role cards with measurable standards, show the sign-off steps in training, and write the service rules in plain words.

A business lives or dies on a few numbers. Know your contribution per unit, your fixed costs and the volume you need.

• In distribution companies: Track cost per drop and per kilometre.
• Contribution per route day = price minus variable cost. Fixed costs are paid whether you sell or not.
• Break-even units = fixed cost divided by contribution. Plan to pass it by a safe margin.
• Make a 12-month cash plan. Cash timing matters as much as profit: customers may pay late, suppliers may want money first.
• Keep money for business and money for the owner apart.
• Test the plan: what if sales fall by a quarter, or cost rises by a tenth?

Activity. Build your own table: price, variable cost, contribution, fixed cost, break-even and a downside case at 75% of sales. Show it to a peer or mentor.

Standard to meet. Calculate correctly, give every figure a source or mark it as an assumption, and show a downside case.

Growth should follow proof. Measure, learn, then add; and keep returning to the customer.

• In distribution companies: Grow by adding drops per route before adding vehicles.
• Pick one growth lever at a time: new customers, a higher repeat rate, a better price, or a new offer.
• Set one measurable target for 90 days, such as 'raise repeat customers from 20% to 30%'.
• Ask each customer how they found you, and record it. Spend more where the record shows results.
• Review monthly: numbers, defects, complaints, cash. Write three decisions each time.
• Plan the renewal of licences, equipment and skills a year ahead.

Longer notes. Post a weekly scoreboard: deliveries on time and complete, stock-outs, cost per delivery and reorder rate by customer. Sort products by days on the shelf and decide for each slow item whether to bundle it, mark it down or stop buying it. Visit the five largest customers every quarter with last quarter's numbers in hand and offer a change that helps both sides, like a fixed delivery weekday. Explain every figure in plain words to drivers and pickers. Promise no growth to the owner. Before moving a customer to a fixed delivery weekday, read what the current commercial rules say about changing agreed terms.

Activity. Write a 90-day plan with one target, three actions and a review date. Present it in five minutes and take questions.

Standard to meet. Set a measurable, dated target, break the actions down small enough to start this week, and put the review date in the calendar.