Distribution Strategy: Measuring the Supplier Relationship is Vital to Both Manufacturers & Distributors

Whitepaper summary:

As suppliers, both distributors and manufacturers frequently use the term “partner” when describing their relationship with their channels or customers. “Partner” is an often used and more often abused description of the relationship between companies, implying they are in step and merrily headed down the same path. The reality is that a good percentage of partnerships have sunken to the point where each party is preoccupied with fulfilling his own self-serving ends. The situation is not surprising, given that the prenuptials are rarely defined, applied in generalities, and infrequently measured. It is no wonder that so many collaborations are doomed to misunderstanding and mistrust.

In any supplier relationship, true partnership happens when both parties are concerned about each other’s performance. The closer a relationship is to a partnership, the more likely each party will be willing to make “investments” in the success of the affiliation. In a manufacturer-to-distributor scenario, the manufacturer might be willing to invest in sales training, lead development, and the provision of some level of “exclusivity.” Distributors in turn are willing to invest in a commitment of inventory, sales support, and “mind share.”

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