They recognize the challenges and the different goals of suppliers and distributors. This makes the relationship between suppliers and distributors very often have a trust issue.
- Distributors exist to offer a market basket of supplier products to customers, but fear that manufacturers would rather market directly to customers.
- Suppliers are dependent upon distributors for market access, but often question the margins earned by distributors.
At the same time
- The Industrial Performance Group finds 82 percent of manufacturers and 92 percent of distributors say profitability is suffering because of problems in their working partnerships.
Why do we talk about this here?
For services it is of outmost importance for the service provider to have a direct relationship with the consumers. They are the ones that can tell us if the service gives value or not. So please read this! This is why you need to value the relationship with your distributors and treat them as both employees and customers. Or as close partners!
http://www.gallup.com/businessjournal/161555/suppliers-manage-distributors.aspx
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