Distributors are realists. One measure of reality is the research of the Industrial Performance Group which found that manufacturers and distributors believe deteriorating working relationships are causing sales and profitability to fall.

Is this decay enhanced by the austerity of the times?

Distributors know the economy affects our business and we are fighting hard to survive across all markets.

As the local suppliers and supporters of industrial accounts, it is a fight we understand and can win. Unfortunately, not all of our manufacturing partners comprehend the situation.

Distributors and manufacturers traditionally aligned themselves as partners and specialists, adding value while avoiding market saturation.

The current economy has forced everyone to assess performance. Manufacturers see that distributor sales have dropped. Some manufacturers choose to correct this dilemma by firing the distributor or increasing the amount of distribution in the territory to raise struggling sales figures.

In lean times, there's a rush to judge performance and change relationships. This often happens without communicating with the distributor.

These changes offer advantages to the end user, who can negotiate with multiple sources for product. But these actions also lower profits, demean customer service, make specialty items a commodity, and destroy the loyalty and pride of the commissioned distributor sales force.

Change isn't a cure-all. When a distributor is canceled, you incur training and inventory costs and lose customer relationships that take years to develop. Many times these changes transpire without discussion, only the receipt of a certified letter. Perhaps this rush to change — or end — a relationship is a reflection of our disposable society. Can we just walk away? Isn't it worth fixing, fighting for, or just talking about? For any association to succeed there must be communication.

The associates I know and respect believe that if the job is not being done, find out why. After candid conversation, if it cannot be fixed, you shake hands and say goodbye. But first and foremost, you talk.

Many distributors feel communication is only flowing out. The manufacturers develop programs without consultation and ask for information without reciprocating. Manufacturer personnel may pressure field reps for sensitive information. In some cases, distributors shared data with a manufacturer who then sold direct to these accounts.

Many manufacturers say that to compete, they can no longer be limited to one area of specialization. They must diversify to grow and must offer products covering the complete component range. Manufacturers, whose products once complimented each other through the distributor network, are now in competition. And each factory wants to know whose products the distributor will emphasize. This leads to questions of trust.

Distributors know success is based upon relationships. We don't want to run the manufacturing plants and manufacturers don't know the local market well enough to run the distributorships. Without distribution, who will be there to walk a customer through a problem or crawl under their machine?

Manufacturers are fighting a global market-share war but local campaigns will determine the outcome of the conflict. I believe distributors and manufacturers can ally and win this battle. Please manufacturers, before making changes, let's talk.