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Forging Stronger Distributor Partnerships

Forging Stronger Distributor Partnerships

Jason Murphy10/27/2022

In the past, a good relationship between an OEM and distributor looked like periodic lunches with a salesperson showing up for face time (not the kind that includes an iPhone). A good partner was willing to negotiate lower prices every year.

That era has ended. Nowadays, great partnerships take a different kind of effort. Instead of sharing a long lunch, strong partnerships share planning cycles, product designs and more. Information is what lubricates the best relationships in the current market.

Here are five distributor-friendly moves that can net a close and reliable partnership with distributors:

  1. Have a strategy. Pick the distributors you want to work with and continue building history with them. Remember that corporate culture counts — choose a company with enthusiastic and dedicated people you enjoy. Make sure you have connections with both independent and authorized distributors to make sure your needs are covered. While traditional distributors may be the right source for many products, independent distributors — some that carry franchised lines —  are critical for unexpected shortages and long-term support. Good relationships build up your flexibility.
  2. Talk early. Get your partners involved early in the new product design cycle. Your authorized distributor stays in close contact with component vendors and will often have good information about what parts might be on the chopping block — or whether one component choice has better supply chain implications than another.
  3. Talk often. This is especially necessary if your product incorporates sole-source products or cutting-edge technology. You’ll want your partner to help you know when problems might be in the offing. Authorized distributors build inventory that is not tied to a backlog of orders so that it will be available to you in the future. Your channel partners will be aware of products that are being pruned in terms of numbers or those that are about to hit the end of life.
  4. Talk in detail. Share as much information as you can with your authorized distributor, including your bill of materials. Your partner can make smarter buys and keep a strategic eye out for parts you’ll need in the future —and stand ready to support you through the whole lifecycle of your products.
  5. Look for the personal touch. Technology tools, such as an electronic data interchange (EDI) system, are important but sometimes you need to be able to pick up a phone and talk to someone.

By fostering an ongoing relationship with an authorized distributor, you’ll find an organization that has programs and measures in place that ensure you get what you need. Better still, you won’t be forced to trust a partner on the fly when an emergency or unexpected issue comes up. Real relationships are built proactively rather than reactively.


To read the article on EPSNews.com, click here: https://epsnews.com/2022/10/27/how-to-forge-stronger-distributor-partnerships/