Transforming Manufacturer — Distributor Relationship via Mobility Solutions.
Digitalization of Businesses (E-commerce ) has changed the way of selling products directly to the consumer, but still, most of the Manufacturers depend on Distribution channels to generate sales.
As a manufacturer, your end goal is to reach out to more businesses (Distributors) and to convince them to carry your products.
Distributors are one of the most challenging relationships for manufacturers. The strength of the relationship has a direct impact on product sales success.
But many suppliers have a hard time getting a handle on those relationships.
So, What is your strategy to keep a healthy relationship with your Distributors?
Let’s Understand the Challenges of Distributor -Supplier relationship
Business Challenges :
Distributors / Dealers / Retailers are the front faces of your products who drive the growth of your business.
Distributors are not the employees and nor a customer, they are like your partners. So many suppliers face this crucial to handle.
Before we can discuss how to improve the manufacturer-distributor relationship, we must first understand some of the challenges that each party individually faces as it relates to their relationship.
Maintaining Brand integrity :
From a manufacturing point of view, when a manufacturer wants to launch any new products and wants to align the product in the marketplace, the company has to go through multiple layers of marketing strategy and in-person meet with the Distributors to educate them about the new products.
It can often be difficult to maintain the integrity and consistency of a brand as its products get disseminated throughout a complex distribution network laden with numerous customer touch-points.
And from a Distributors' view, they are independent businesses whose goals are not always aligned with the manufacturer. Due to the lack of information about the new product, they want to sell the most familiar old product instead of a newer product that the manufacturer wants to presently push.
Traditional Product Distribution :
Ever wondered how long does it take to reach the end mile of your business i.e Dealers and Retailers?
Ever considered to optimize the distribution & ordering process?
A multi-layer of interaction and age-old ordering process ultimately makes your business slow and gives your competitors a chance who has the technology-driven process & Payment solutions to meet the demand.
Lack of Support :
The misalignment of products in the market place can often be caused by the lack of support, that the distributor receives from the manufacturer.
In fact, the lack of support from manufacturers is the biggest complaint that distributors have.
A manufacturer might sell through multiple distributors, a single distributor will undoubtedly be representing multiple manufacturers. This creates an issue of a need for exclusivity. When these types of challenges arise the conflict, distrust, and miscommunication can stop even the most resilient of relationships dead in its tracks.
Thus maintaining a healthy relationship and engaging them with a common goal is the utmost priority to succeed.
Solutions Overview & Strategies :
Introducing technology or investing in technology is the best strategy to stand out in the market.
A Gallup client found that technology driven engagement delivered 1.4 times more revenue than the average.
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Adopting Distribution and engagement technology will permanently disrupt the age-old the barrier between a company and it’s a most critical partner of growth, It is the time to engage all the people in a platform.
Most of the Global and Indian companies that lead technology and industry best practices are connecting with their Dealers, Retailers and Channel Partners for Real-time Sales Order, Latest Update on New Products, Promotions & Catalogue, Visibility of Price, Schemes, Claims, and escalation of unresolved issues.
Mobility Solutions ( Mobile application) help the companies to
- Educate distributors about products on the go.
- Sharing the latest update instantly.
- Provide quick and easy access to the necessary documentation.
- Offer ing Help Desk & Support Platform.
- Browsing products, Order placing & Tacking.
- Easy Payment Solutions.
This paradigm shift will change the balance of power in favor of agile and technology-driven companies. The market leadership of traditional companies will be challenged by the companies adopting and leading traditional businesses with the exponential power of new-age technologies.
