Typically, a distributor calls us in because he's got a customer with some type of product failure that he wants to prevent from recurring. For example, if a roller chain fails due to tensile strength or fatigue wear, and he just goes in and replaces it with the same type of chain, it's likely to fail again.

Depending on the application, failure can be catastrophic, whether it's death in an amusement park or extremely costly downtime at a cement mill.

We want the distributor to work with us to really assess the root cause of the product failure—to go in and check the alignment, the horsepower and all the application elements—then get involved in recommending a solution that will help us prevent another failure.

The payoff for the distributor is that he's really taken himself out of the price arena and moved into providing value. He's no longer providing just a product, but an integrated package of engineered solutions to help his customers keep their equipment running and plants operating at peak efficiency.

Customers want to maximize uptime, to keep their equipment running and their plant operating at peak efficiency. Distributors who are willing to work creatively with us can help their customers meet those goals while creating the potential for new business.

By being proactive in helping their customers, rather than just reactive, they really distinguish themselves from their competitors.

We had a consumer products manufacturer that was having problems with premature chain elongation. They couldn't lubricate the chain because it would contaminate their products. Rather than just replacing our competitor's chain with a similar product from our line, the distributor called us in to do an engineering evaluation.

We ended up recommending a lube-free chain that's a unique product for us. Even though this chain costs two and-a-half times more than the product they were using, its lifecycle is seven times longer, a substantial savings in total cost.

The end result: both distributor and manufacturer picked up a nice piece of business, while the distributor's enhanced reputation as a problem-solver allowed him to expand his role in supplying other products to that customer.

The key to this message is to look beyond the obvious. One way to do this is to travel or have lunch with the salespeople at the OEM that you're targeting. Ask them what a typical customer complaint might be. (My guess is that they'll be more than willing to tell you.) Consult with the maintenance group at the end user that has installed the OEM's equipment. Ask them about their most frequent trouble shooting requests. Challenge your own (or your supplier's) engineering group to look for creative solutions.

The 1990's were littered with line extensions and "me too products." Global competition, coupled with the presence of "Big Store/Big Leverage" retailers in the consumer arena, prevents manufacturers and smaller local distributors from simply introducing multi varieties of replacement items. There simply is not enough shelf space for the different varieties.

To prosper in the future, distributors and manufacturers will have to develop innovative skill sets that go beyond simply changing out existing products.