One of the most complicated labours of manufacturers is controlling their distribution channels, mainly with respect to the fulfilment of the recommended prices. Manufacturers usually establish prices that are called MAP to indicate the minimum advertised price that the channel can use. These prices in reality are impossible to control due to the magnitude of the channel, and therefore they end up being violated and not respected.
Frequently the situation is as follows; one retailer violates the Price and the rest react in a chained sequence, generating a Price war that can be difficult to resolve. Therefore it is indispensable to front these difficulties and resolve the problem as soon as it arises, preventing it to spread and make the channel feel neglected by their manufacturer.
The ideal way to control this situation is to keep a close eye on each violation that is produced, receiving a notification of when, who and with what price they have violated the MAP. This information should be accompanied by a screenshot showing the violation, and can be used to show the retailer that they should rectify the price in order to avoid a greater wrong doing.
A few years back this resulted in an impossible labour, but thanks to technological advances, looking after the smooth running of prices in the distribution channel is only a few clicks away.
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