Territory Management vs. Network Planning – what’s the difference?

The terms ‘Territory Management’ and ‘Network Planning’ are two relatively technical terms that sometimes get confused by people outside of the logistics industry. The distinction is crucial however and they can be broadly understood as the below.

Territory management’ refers to the process of dividing up and organising areas depending on customer placement and demand. Good territory management allows a business to connect with their clusters of customers more effectively while assigning operational resources more evenly. Organising regions by specific segments also assists with the day to day deployment of resources throughout a variety of processes.

Territory Management allows for more coherent reporting and forecasting, identifying business trends by area. When territories are divided properly, assigning or relocating staff based on each areas’ demands becomes much easier – if a given area is experiencing an increase or decrease in sales, your business may choose to allocate staff from other regions in response. Moreover, marketing by region or area becomes possible with cogent territories, and area-specific stock can be allocated based on customer demand.

Supply chain network planning is the complex process of purchasing and assigning resources and overseeing their transportation, and the processing and distribution of products to customers or clients.

When network planning, it’s essential to have a clear understanding of the aim of the operation. With this clear objective and the supporting goals in mind, resource assessment and arrangement is then undertaken to set the operation into motion, from which point observation and maintenance must take place. In other words, network planning is the process of plotting out a system of capable of transporting and processing materials to make them available for consumption at their specific destinations by consumers or clients.

End to end, network planning must take into account the sourcing of materials, the collation of these materials at a factory or other processing plant, the packaging of these products, and the delivery of these products to other warehouses or company branches.

Our range of territory and resource management products help you optimise the allocation of work to resources, defining depot areas, creating rounds, routes, lanes and territories and helping you determine how many sites or territories you need and where they should be located.

Optisite from Mapmechanics is a distribution planning and site location modelling solution designed to help you analyse and manage your distribution resources more effectively. Optisite can suggest the optimum number and location of distribution centres, as well as the best use of your current facilities.