Evaluating Distributors to Build a Strong Network
Manufacturers relying on distribution
networks for after sales parts support have a variety of factors to consider
when selecting suppliers for authorization. To build the strongest network
possible, here are some key areas to think about when evaluating distributor partners:
networks for after sales parts support have a variety of factors to consider
when selecting suppliers for authorization. To build the strongest network
possible, here are some key areas to think about when evaluating distributor partners:
·
Value – For any
successful business relationship, there has to be a win-win benefit. What value
does the distributor bring to the table beyond basic pick/pack/ship capability?
Value – For any
successful business relationship, there has to be a win-win benefit. What value
does the distributor bring to the table beyond basic pick/pack/ship capability?
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| Robert Coolidge President & CEO |
Are they integrated with major claims administrators to streamline the repair cycle? Do they offer board
recovery and repair service to supplement the supply chain and minimize
costs? Can they help eliminate the
significant opportunities that exist for gray market parts to displace OEM
parts? Do they employ sophisticated technology and generate comprehensive
performance reporting so manufacturers know exactly what’s going on in their
aftermarket supply chain? Distributors should deliver specific, value-added
benefits to the manufacturer that warrant inclusion within the network.
·
Differentiation – Ideally, each distributor in a network will
deliver distinct advantages so that each link creates a stronger chain. One
supplier may provide access to a large, loyal customer base while another
excels in pricing and performance metrics. Cultivating a stable of complementary
distributors will only enhance the network.
Differentiation – Ideally, each distributor in a network will
deliver distinct advantages so that each link creates a stronger chain. One
supplier may provide access to a large, loyal customer base while another
excels in pricing and performance metrics. Cultivating a stable of complementary
distributors will only enhance the network.
·
Relevance – Is the
distributor keeping pace with evolving market trends and technology or are they
still doing business the same way they’ve done it for years? Avoid distributors
that make no effort to continually evaluate their operations and implement
improvements. A staid distributor brings no value to the network.
Relevance – Is the
distributor keeping pace with evolving market trends and technology or are they
still doing business the same way they’ve done it for years? Avoid distributors
that make no effort to continually evaluate their operations and implement
improvements. A staid distributor brings no value to the network.
·
Diversification – In
today’s competitive market climate, no business can afford to be a one-trick
pony. Manufacturers, distributors, servicers and retailers alike are seeking opportunities
to diversify and capture additional market share. Distributors that support multiple
vertical markets are able to spread operational costs among multiple
manufacturers, while offering customers a convenient single source. Distributors
that can offer parts for a variety of product segments will have an edge over
those that focus on only one.
Diversification – In
today’s competitive market climate, no business can afford to be a one-trick
pony. Manufacturers, distributors, servicers and retailers alike are seeking opportunities
to diversify and capture additional market share. Distributors that support multiple
vertical markets are able to spread operational costs among multiple
manufacturers, while offering customers a convenient single source. Distributors
that can offer parts for a variety of product segments will have an edge over
those that focus on only one.
Manufacturer brand loyalty is largely
dependent on a robust parts distributor network. Manufacturers that carefully
evaluate their networks and prospective distributors are certain to compete
more effectively in the market.
dependent on a robust parts distributor network. Manufacturers that carefully
evaluate their networks and prospective distributors are certain to compete
more effectively in the market.
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