Gone are the days when distributors were given exclusivity by a manufacturer for a given product line in their trading territory. It seems that almost every product is available from a variety of distribution channels, including online. Knowing what to stock for any given customer is a constant challenge.

As distributors, we have to manage our inventory more efficiently and closely than ever before. Our manufacturers are expected to ship products the same day and keep an adequate inventory of core items. This, of course, is driven by our customers, who demand immediate delivery and best pricing all the time. How then does a distributor find a balance between the number of suppliers it needs and the ever-increasing demands that its customers place?

Identifying key vendors, and working more diligently with those vendors, may be one answer. We all realize that we cannot limit our efforts to only key vendors, but what we can do is focus our efforts with them.

About a year ago, Levac Supply Ltd. developed what we call our "Key Vendor Program" to help us manage a growing number of vendors and product lines. We set criteria for selection for these vendors and then, with input from our technical sales representatives, we chose a key vendor in each of several different product categories. These included products such as power tools, hose products and gaskets and packing.

The key criteria for selection included manufacturer's representative support, field detailing on a regular basis, product quality, pricing competitiveness and technical support. Of all these criteria, a critical requirement of a key vendor was the level of support we receive from their sales representative, and more importantly, our own sales team's willingness and desire to work with that individual.

If a manufacturer only sends out a new representative every six months, it is difficult to build a relationship of trust. Our sales people ask themselves, "Why should I work with this person, when I may never see him or her again after the first few visits?" Retaining quality salespeople is undoubtedly a challenge for our vendors, as it is for us, but those manufacturers who successfully manage their sales personnel will more likely experience consistent positive growth with their valued distributors.

You don't need to be a large distributor to get the attention of a manufacturer. In fact, we have found that by sharing with our manufacturer that he is a key vendor and the only one in a specific product category, their sales representative is more willing to make calls on our behalf and work with our people in the field. In essence, they act as additional salespeople for us, because they are face to face with our customers almost as often as our own sales team..

After only a year, we have seen real growth with several of our key vendors, and in each case, this growth is the result of a more focused effort by us and the manufacturer sales representative with our customers.

If you find that your technical sales people are trying to juggle too many products and are con-fused as to what product lines to focus on, maybe a "Key Vendor Program" is right for you.