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Mutual respect pays off

Despite sweeping changes in distribution, at heart it remains a relationship business

By Richard A. White -- Industrial Distribution, 3/1/2006

Distributors and manufacturers recognize that the strength of their relationships is a critical source of competitive advantage for their companies and their customers, and work hard to nurture them. And while it may be impossible to create from scratch the type of chemistry that makes two people really click, the basic elements of mutual respect can go a long, long way.

Distributors complain—fairly—about manufacturers who have a revolving door for field salespeople and leave it to their distributor to train greenhorn staff. But there also are many manufacturers who truly make the effort to invest in their people to ensure they fully understand their products, customers and applications. For manufacturers like us, it's frustrating when distributors don't take advantage of the resources we have to offer, whether through joint calls, market planning or product/application training.

Equally frustrating are the petty things that can chip away at trust and partnership.

As a niche manufacturer, we recognize that our products aren't at the top of distributor lists in terms of sales volume. But we still appreciate the niceties that indicate we're a valued partner—and demonstrate our appreciation by working more closely with distributors who respect what we bring to the table.

As part of our own continuous improvement efforts, we recently surveyed our in-house sales force about things distributors inadvertently do that create inefficiencies in the relationship. We were expecting macro-level complaints related to distributor processes; instead we ended up with micro-level pet peeves:

  • Distributor salespeople turn out in force for an after-hour sales seminar but sales management is a no show.
  • A factory rep drives 300 miles for a scheduled day of joint calls, only to discover the distributor salesperson has just two appointments lined up.
  • Our salesman is ready to jump in the car at 8 a.m. to make a joint call at an end-user account, but the distributor's salesperson first needs to make a few phone calls or complete some paperwork, leaving the factory rep cooling his heels and sipping coffee for two hours.

Like distributor salespeople, factory reps get pulled in many directions and need to focus their limited time where it creates the most value. Distributors who waste their time find factory reps are less likely to visit or schedule joint calls, further eroding trust and damaging the relationship.

Every manufacturer depends on their distributor salesmen to exponentially increase their presence in the marketplace. But with the broad range of products a distributor sales force represents, we know that our factory reps are the ultimate experts on our own products.

Distributors that leverage a factory rep's knowledge, expertise and time in their own selling efforts create greater value for their customers, for us and for their own organizations. When distributor and manufacturer sales personnel have a strong relationship, everyone will benefit—especially the customer.


Author Information
Richard A. White is president & CEO of Flexible Steel Lacing Co., Downers Grove, Ill. Contact him at (630) 971-0150. He chairs PTDA's Manufacturer Council and is a member of PTDA's board of directors.

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