The survivor in us all

-- Industrial Distribution, 4/1/2001

Other articles from this Construction Target Report:
Profile: Ocala Industrial Supply serves central Florida contractors 
Application: Greenlee Textron delivers a better field office box
News: STAFDA boot camp trains members in technology

By Andy Morris

Andy Morris, left, is marketing manager for Norton Construction Products in Gainesville, Ga.


One of today's pop culture icons is CBS's Survivor series. If you're not familiar with this reality-based television show, suffice it to say it is based on group dynamics, strategic alliances, competition, and greed. Not unlike today's business climate.

As interest rates drop, unemployment begins to creep up, and the economy in general begins to slow, the concepts of Survivor become more apparent in day-to-day business. With a finite number of distributors able to move product to the marketplace, competition among manufacturers is at an all time high.

While everyone agrees that competition is healthy, times of slowing economies should be times when manufacturers and distributors consider strategic alliances with one another for long term survival. It really is as simple as looking for a partner that is agile to changing market conditions, financially solid and well managed. All too often, manufacturers may take the attitude that their products deserve shelf space "just because." Prudent distributors, however, are looking for suppliers who can either add value to their operation or allow them a unique competitive advantage.

Manufacturers wouldn’t want to suddenly find themselves lacking distribution in a particular market because their distributor didn’t survive.

As a distributor, a considerable amount of time and effort is invested in promoting, selling, and expanding the market for a given line of products. In exchange for this investment, it should be a reasonable expectation that the manufacturer can withstand temporary economic slowdowns and supply quality product in a reasonable amount of time.

If this doesn't — or can't — happen, ill-prepared manufacturers will find themselves voted off the island!

Conversely, manufacturers wouldn't want to suddenly find themselves lacking distribution in a particular market because their distributor didn't survive. It is just as important for distributors to be well prepared for changing market conditions and "sell" this preparation to their customers and suppliers alike.

On Survivor, the more talents you bring to the game — athletic prowess, hunting skills, team building skills, etc. — the greater your chances are of winning. Those who don't contribute or bring value to the group find themselves among the first to be ousted.

This, too, is no different when evaluating manufacturers or distributors. For distributors, be careful when looking only at a manufacturer's price or discount structure. What else is your potential partner able to bring to the party? Are they up to speed with electronic technology and ways to simplify your business? Are they innovative with new products? Do they respect the important role of distributors? Are they able to assist your own sales people in the field? Do they have growth expectations similar to your own? Obviously, the list goes on and on.

Unlike the television show, this is a game where two survivors — well prepared suppliers and distributors — will win the ultimate prize of growth and prosperity.