How the Distributors Should Be Supervised By Suppliers

http://businessjournal.gallup.com/content/161555/suppliers-manage-distributors.aspx

It is a known fact that a lot of supplier industries are experiencing relationship issues with the firms that distribute their services or products. This is due to the fact that the distributors have similar functions as salespeople or even employees in a number of ways. Over all, these people are the outlet that the supplier taps to penetrate the marketplace.

As an example, the customer packaged goods distributors (CPGs) for a firm that sells insurance are actually the insurance agencies that promote and sell the coverage and policies of the supplier. For a corporation that disperses drinks, the distributors are the wholesalers who would sell their inventory to a retailer, who will then sell that merchandise to the end consumer. And as a final example, a manufacturer of cars, the distributors equal the business agreements that sell the automobiles of the supplier to the buyers.

The thing here is that distributors normally have intensely demanding prerequisites, just like the consumers would. If the suppliers are not able to reach their targets, the partnership will weaken.

So how must suppliers maintain their workers and the distributor firms? Do they treat them like customers or like employees? Based on thorough research on the businesses of automotives, financial services, CPGs, medical tools, and insurance, the answer is simple: Suppliers have to treat them like employees and customers. More importantly, the most efficient distributor-supplier partnerships have suppliers treating their distributors like they are associates.

The analysis also shows that managing and gauging the distributor-supplier partnership can optimize the working performance of the customer packed goods distributors. Before it becomes a reality though, the suppliers have to get through two major trials: watching over their brand when they are able to get to the consumers solely through an outside entity and retaining and recruiting a lot of talented individuals that work with the other party.