FPDA focuses on building relationships at annual meeting
By Staff -- Industrial Distribution, 4/1/1998
Rio Grande. Puerto Rico--A strong focus on ways to improve the manufacturer-distributor relationship highlighted the annual meeting of the Fluid Power Distributors Assn., held March 1-5 at the Westin Rio Mar Resort. According to Mary Connor, FPDA executive director, more than 500 people turned out for the event.Keynote speaker Robert Nadeau, of the Industrial Performance Group, identified the most common mistakes manufacturers make when dealing with distributors, and offered tips on how to avoid them. He listed those mistakes as:
* Viewing your distributor as a customer;
* Failing to understand the distributor's business;
* Failing to understand the customer's business;
* Not setting goals for distributor performance;
* Assuming distributors can sell without augmenting their sales efforts;
* Assuming distributors want to sell without demonstrating how your products contribute to their financial success.
* Relying solely on discount programs and other "spiffs" to encourage distributors to sell your products;
* Failing to properly manage the relationships you maintain with distributors;
* And, failing to communicate with your distributors on a regular basis.
Nadeau also moderated a panel discussion with three buyers who pointed out that they want distributors to "be more involved with their companies to identify and solve problems" and to be one-stop supply houses. "I don't want my distributors to be there on a sales call. I want them to be there to offer assistance and aid when I need help,'' said one panelist.
John Monoky, of Monoky & Associates, described ways for manufacturers and distributors to partner and serve the needs of the end user. Monoky, author of ID's Strictly for Sales column, also pointed out the rules of partnering. One of the rules, he said, is that partnering "opens channels of communications and confronts difficulties head-on in a businesslike manner to preserve and grow the partnership.''
Dr. Bill McCleave presented the results of focus groups of manufacturers and distributors to identify the relationship problems between the two groups. Those problems include: communications; financial pressures; declining market share; product development and support; channel design and management concerns; technology and training.
Other speakers included Jeffrey Susbauer of Cleveland State University, who focused on strategic planning; Al Bates of the Profit Planning Group, on financials, and Reed Stith, president of Industrial Distribution Consultants, who described ways for manufacturers and distributors to create an ideal working relationship.
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