---
title: "Assessing Distributors: Eight Dimensions to Determine Their Level!"
description: "This article outlines eight dimensions to evaluate a distributor's management level, including vehicle sales visits, business processes, salary structures, regional division, assessment results, commission orientation, bottle return commissions, and driver-salesperson wage composition. It emphasizes the importance of internal management systems for improving competitiveness."
author: "方刚"
publisher: "New Distribution"
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published: "2018-09-29"
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# Assessing Distributors: Eight Dimensions to Determine Their Level!

> This article outlines eight dimensions to evaluate a distributor's management level, including vehicle sales visits, business processes, salary structures, regional division, assessment results, commission orientation, bottle return commissions, and driver-salesperson wage composition. It emphasizes the importance of internal management systems for improving competitiveness.

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We can see that most distributors have been fighting on the front lines for years, somewhat like "mountain bandit" style "military generals." Many small and medium-sized distributors are all-capable: delivering goods, collecting payments, negotiating, shipping, unloading... They can do everything, one person can do the work of N, and they are "models" who fear neither hardship nor fatigue.
Even if the manufacturer sends a truck with more than ten tons of goods, a husband-and-wife team can unload it all in one go and then go deliver. Moreover, too many distributors seem stuck in a "money hole" and can't get out. When the business is small, they can't afford to hire people, so they do it themselves.
When the business grows, they are reluctant to hire people, and even if they do, they only like "machine-type" salespeople who work but don't eat. The consequence is that they hire but can't retain them.
How can small and medium-sized distributors improve their operational level? It depends not only on their opportunities and environment but also on their "intelligence" in business team management.
1**First: Vehicle Sales Visits**
The basic unit of a distributor's operations is mostly the "1+2" model, meaning one vehicle with two people: one driver and one salesperson. This is the standard vehicle sales model.
So what is the visit model? It's the "1+1" model, where the salesperson rides a bike to visit terminal outlets individually to take orders, and the driver delivers goods by vehicle according to the orders.
**The advantage of the vehicle sales model is simple management and immediate transactions**; the disadvantage is that salespeople visit large stores (stores with good turnover) but not small stores (stores with poor turnover), often missing stores or skipping them, casting a wide net with poor returns, resulting in low efficiency and high costs.
**The advantage of the visit model is area-based development, meticulous operations, pervasive visits, and precise delivery with low costs**. The disadvantage is that managing the sales team is difficult, and the game of cat and mouse is played daily. Once the sales team slackens, order output is low, and management problems arise.
2**Second: Business Processes**
**The so-called business process refers to the distributor's internal management process**, from warehouse entry and shipping to delivery and payment collection, to financial management, with complete processes. Many small and medium-sized distributors operate on a boss + boss's wife model, or boss + boss's wife + boss's wife's mother (mother-in-law or relative). Some bosses are "Monkey King" types, capable of anything, handling warehouse, finance, delivery, negotiation, and even loading and unloading themselves. Such distributors are mostly in the early stages of entrepreneurship, and the result is often exhaustion. Even if they earn a hard-earned profit, it's like "meat rotting in the pot"—they only know they made or lost money, but not where the profit or loss came from.
3**Third: Salary Structure**
Most distributors pay salespeople on a base salary + commission model. As long as attendance is sufficient, the base salary is guaranteed. The key lies in the commission part. Many distributors calculate commission based on turnover, i.e., turnover × commission rate = salary.
In the early stages of this model, if the rate is set appropriately and salespeople can see and actually receive the commission, it benefits business promotion. But over time, distributors will find that salespeople only sell old products and bestsellers, ignoring new or non-bestselling products. Even worse, to achieve turnover, salespeople may manipulate prices, promotions, or even payment collections.
For distributors, it's essential to elevate the assessment model to a management level. Assessment is the "command flag" in the distributor's hands; wherever the flag points, that's the direction for salespeople to attack. Regarding assessment indicators, it's normal for salespeople to have a "policies above, countermeasures below" mentality, but distributors must be "a foot higher than the demon."
For example, after discovering that the base salary + commission model is ineffective, distributors can introduce a category-based assessment method, or combine it with new products by adopting a "special case" commission, setting a commission rate per box of new products, and changing monthly commissions to same-day settlement. Continuously fine-tune assessment indicators so that while salespeople keep their eyes on commission wages, the distributor's operational focus shifts with the changes in indicators.
4**Fourth: Regional Division**
In the early stages, distributor management is mostly "bandit-style." On the mountain, the distributor waves his hand and says, "Brothers, down the mountain there is fine wine and treasure; go get it!" So a group of salespeople scatter, fighting and killing, eating meat and drinking soup! They don't distinguish between east and west of the city; after stocking, they fight among themselves—you take my job, I fight for your territory. Several vehicles fly around, and the money earned isn't even enough for gas.
**Adopting regional division management** not only solves the above problems but also allows the distributor's subordinates to each show their unique talents. When problems arise in local markets, they can be discovered and remedied in time, and the distributor can master resource allocation within the sales team.
5**Fifth: Assessment Results**
At the end of the month, the distributor pays wages and asks, "Zhang San, how much did you get?" Zhang San: "1,860 yuan." Ask: "Do you know how this salary came about?" Zhang San: "I don't know!" This is the problem of a chaotic financial system.
If the distributor company can also establish a transparent financial system and processes, this problem can be solved, allowing employees to understand clearly, feel stable, and work wholeheartedly. For example, Zhang San answers: "This month, my base salary was 900 yuan, plus sales commission of 360 yuan, selling 2,000 units of new products with a commission of 700 yuan, and a deduction of 100 yuan for exceeding the gas budget." That would be the ideal state.
6**Sixth: Commission Orientation**
When the sales team is immature, commission-based management is a common tool. Once the distributor's management matures, most adopt a "contract system," where the vehicle and market are contracted to subordinates, and the distributor only sits in the warehouse and handles manufacturer contacts.
Under the commission model, small and medium-sized distributors often have overly simple management systems; having a basic ledger is already good. They face difficulties in data aggregation and information transmission, and setting commission rates mostly relies on experience. The assessment model may remain unchanged for years, often resulting in a situation where salespeople do more or less and get the same. Salespeople appear diligent in the warehouse, but once out the door, they play hide-and-seek, even using the vehicle for personal errands, sneaking off to internet cafes, or gathering for mahjong. The distributor is kept in the dark, sitting at home listening to salespeople complain: "The market is tough, tougher than climbing to heaven!"
The main reason for this phenomenon is the "big pot rice" assessment mechanism. The base salary accounts for more than half of a salesperson's income, and commissions on bestsellers account for the other half. Everyone is harmonious, and salaries are similar. With the guarantee of old bestsellers, everyone can earn similar wages with their eyes closed, without needing to worry or work too hard!
The initial commission model for distributors can be base salary + turnover commission; the intermediate model is base salary + category commission + new product special case; the advanced model is turnover commission + category commission + performance improvement commission. For example, distributors can set an annual performance growth commission, adding a 1,000 yuan bonus to reward the top few salespeople with the fastest annual performance growth, or reward those with the fastest month-over-month improvement. As long as methods are diverse, rewards are in place, salespeople's enthusiasm is boosted, reward standards are clear, and assessments are daily, giving everyone the desire to strive for progress, the team will be a "howling" sales force.
7**Seventh: Bottle Return Commission**
Beer distributors know well the heavy, low-value nature of beer in logistics. The key is that bottle return occupies an important position in the business process. If the distributor doesn't put effort into the bottle return link, there will be a "one-shot deal"—terminals accept the goods, but the bottles either have no one to take them or are sold as glass waste for a few cents each. If the distributor sets the bottle return commission improperly, there will also be problems where salespeople only deliver but don't return bottles, leading to increasing terminal complaints, gradual loss of outlets, and inevitably sales problems.
8**Eighth: Driver and Salesperson Wage Composition**
In the distributor's "1+2" business model, the driver and salesperson form a combat unit, more like two grasshoppers tied to the same rope. Without unified coordination, efficiency is low and internal friction increases. When setting assessment indicators, distributors **must consider the integrity of this combat unit**, clarify the superior-subordinate relationship between the two, and link the driver's wage to the salesperson's wage—that is, the driver's wage level depends on the salesperson's wage amount.
For distributor salespeople, even if the boss grabs their ears every morning and shouts, "Sell the wine well," they will turn a deaf ear once out the door. Because distributor salespeople are unwilling to do what is "hoped for"; they only do what is assessed. Only assessment determines their income. Therefore, distributors must work on their internal assessment system, perfect it, and strive to improve internal management to enhance market competitiveness.
After assessing a distributor through these eight dimensions, you can clearly see the distributor's management level and capability.
**Eight phenomena of distributor salespeople + eight dimensions to assess a distributor = a distributor's internal management health check report!**
This article is excerpted from Mr. Fang Gang's book "FMCG Veterans Do It This Way: Regional Manager's Playbook."
**On October 23-24, during the Autumn Sugar and Wine Fair, New Distribution will host the '2018 FMCG City Distribution Logistics Conference'.** We will invite industry experts, FMCG warehousing and distribution specialists, and distributors who have transformed into unified warehousing and distribution platforms to discuss and answer questions around the theme 'New Distribution, New City Distribution,' focusing on future trends in FMCG city distribution logistics and practical cases of distributor transformation to unified warehousing and distribution. We hope to bring you different inspiration and thinking!
**Conference Time**
**October 23-24, 2018**
**Conference Venue**
**Hunan · Changsha Gaoqiao International Commodity Exhibition and Trade Center**
**Conference Content**
**10.21 Day 1 Sub-venue:**
"2018 Changsha Regional King Development Alliance Conference"
8:00-17:00 Focus on regional big merchants' resource sharing, leading the S2B2C new business era
**10.21 Day 1 Evening 18:30-21:00**
Private board closed-door exchange dinner (VIP)
**10.22 Day 2 Morning Main Venue:**
**"2018 China FMCG City Distribution Logistics Conference"**
9:00-9:20 Ren Xiaodong, Secretary-General of FMCG Association and Partner of New Distribution: Launch and address of China FMCG City Distribution Alliance Project
9:30-9:50 Zhao Bo, Founder of New Distribution: Same-city logistics: The most effective transformation and upgrade path for distributors
9:55-10:15 Wang Qi, CEO of Weijie City Distribution: "Following the Rhythm of Business Flow, Seizing Platform Construction"
10:20-10:40 Chen Siting, CEO of Wanchaobang: "New City Distribution is a Key Link in Supply-Side Reform"
10:45-11:05 Xu Yonggang, CEO of Maideline: "Differences Between Traditional Warehousing and Digital Warehousing"
11:10-11:30 Mu Weiwei, CTO of Zhoupu Software: "Technology-Driven Efficiency Improvement in Unified Warehousing and Distribution"
11:35-12:05 Roundtable Forum: City Distribution, What Money Should Be Made? (Yishang Logistics, Gongwu Logistics, Kaidongyuan, Yun Warehouse Distribution, Chengpu Logistics)
**10.22 Day 2 Afternoon Main Venue:**
14:00-14:20 Sheng Yan, Yijia Logistics
14:25-14:45 Wang Jianjiang, CEO of Hailian Tianxia
14:50-15:10 He Yan, Fengwang
15:15-15:35 Zhong Shuo, CEO of Wangcang
15:40-16:00 Rong Jun, Jiangsu Huashang City Distribution
16:05-16:25 Lu Lixin, Gongwu Logistics
16:30-16:50 Roundtable Forum: How to Break Through When Distributor Peers Don't Enter Warehouses?
Distributor transformation representatives for warehousing and distribution: Yunbang Logistics, Jingmen Pengdun Meiyitian, Sanxing Lianggou, Jiangsu Huashang City Distribution, Jingwei Logistics
**List of Participating Companies**
In no particular order
Hunan Zonglan Diandan Network Technology Co., Ltd.
Jingbang (Wuhan) International Freight Forwarding Co., Ltd.
Mengniu Dairy
Qinghai Hanxiang E-commerce Co., Ltd.
Unilever Services (Hefei) Co., Ltd. Shanghai Branch
Huicong
Hunan Xuan'ang Food Co., Ltd.
Guangzhou Tongdaoren Information Technology Co., Ltd.
Qingdao 888 Trading Co., Ltd.
Uni-President Enterprises (China) Investment Co., Ltd.
Hunan Province Zhongxiang Gongpei Logistics Co., Ltd.
Shenglong Ingredients
COSCO Shipping Logistics Warehousing and Distribution Co., Ltd.
Guangxi Yongpai Liquor Co., Ltd.
Shangqiu Kangrong Trading Co., Ltd.
Jinan Dingzhong Economic and Trade Co., Ltd.
Liaoning Bimai Agricultural Technology Co., Ltd.
Kunming Xiongjia Trading Co., Ltd.
Shaanxi Houheng Trading Co., Ltd.
Guangzhou Dingwo Enterprise Information Consulting Co., Ltd.
Shaodong Jiajiale Commercial Firm
Boda Trading
Industrial Bank Changsha Branch
Wuhan Muchen Convenience Store Chain Co., Ltd.
Fujian Fuxing Yun Warehouse Logistics Co., Ltd.
Guizhou Yilimi E-commerce Co., Ltd.
Jiangxi Xiao Laoer E-commerce Co., Ltd.
Jinshankoufu
Shanxi Taihang Yuanjing Supply Chain Management Co., Ltd.
Shanxi Dezhun Supply Chain Management Co., Ltd.
Shaoyang Tongdeli Trading (Xiangbang Logistics)
Huanfu
Tongda Express City Distribution
Beijing Xinjingxiang Food Co., Ltd.
Wuhan Huizhong Tianhong Liquor Co., Ltd.
Changsha Paide Biotechnology Co., Ltd.
Chao'an Tuqiang
Guizhou Yihe Bopin Supply Chain Management Co., Ltd.
Jiangxi Kang'en Industrial Development Co., Ltd.
Xiangtan County Yisuhe Town Yuhua Paper Store
Luoyang Yuanlang Trading Co., Ltd.
Tongchuan Yaozhou District Huayuan Supermarket Co., Ltd.
Hunan Yongfu Jiujiu Trading Co., Ltd.
Zhejiang Chengchengtong Logistics Co., Ltd.
Chongqing Kaiguo Materials Trading Co., Ltd.
Beijing Xianmaixianmai Data Technology Co., Ltd.
Hanchuan Qixing Trading Co., Ltd.
Tongxin Jiuzhiru Trading Co., Ltd.
Guizhou Meiguo Guoguo Network Technology Co., Ltd.
......
**Distributor Transformation Representatives (Proposed)**
In no particular order
Rong Jun, Chairman of Jiangsu Huashang City Distribution Network Co., Ltd.
Wang Bo, Chairman of Hubei Yijiaren Logistics Co., Ltd.
Jiang Shuming, General Manager of Sichuan Chengdu Xingrenxing Trading Co., Ltd.
Liu Jichen, Chairman of Shandong Yunbang Warehousing and Logistics Co., Ltd.
Tu Mingyu, Chairman of Chongqing Lingyu Consumer Goods Supply Chain Management Co., Ltd.
Yang Su, Chairman of Guangzhou Zhongshan Wanrong Marketing Co., Ltd.
Yuan Xia, Chairman of Sichuan Bajie Supply Chain Management Co., Ltd.
Li Qiangyun, Co-founder of Hubei Pengdun Meiyitian Supply Chain Management Co., Ltd.
Zhang Jianyong, Chairman of Henan Xuchang Jiulegou E-commerce Co., Ltd.
Ma Haichao, Founder of Hebei Changyi Logistics Co., Ltd.
Meng Yucun, General Manager of Hebei (Chengde) Wulian Yun Warehouse Co., Ltd.
Zhang Xun, Chairman of Xinjiang Urumqi Su'an Jinchi Logistics Co., Ltd.
Zhang Hailing, Chairman of Jilin Sanxing Lianggou
Qiang Huitao, Founder of Hebei Dunjie Supply Chain Management Co., Ltd.
Liao Lei, General Manager of Hunan Damei Supply Chain Management Co., Ltd.
......
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