How to manage distributors by B2B management?
B2B is a buying and selling behaviour between, but how do you efficiently manage it?
If you’re a manufacturer, you must know how to manage your distributors!
Distributors, it’s kind of an intermediaries, such as wholesalers, dealers and value add resellers. The ideal environment for a distributor is a market with many small customers and where the level of sales service required is high. The spread of customers is difficult and expensive to reach with a directly employed sales force who are more suited to dealing with a limited number of large buyers. Distributors generally aim to win business on sales rather than technical service. Their stock of products means customers can have instant delivery.
A difficult technical problem may require manufacturer. Simple repair work may be handled by the distributor. Distributors always want to get more profits but maybe they don’t use the right sales force or channels. Poor distributors can be recognised by their low level of stocks. Since an important role of the distributor network is to provide immediate access to goods, poor stocks will result in poor service. The same person who carries inadequate stocks is likely to be the one to complain that the manufacturer is letting him down with deliveries which are too slow.
However, manufacturers are also accused of being interested only in selling into distributors and providing little help in selling out. Sometimes, manufacturers will force their distributors to get large bulk, but don’t help them to improve the knowledge of the products or provide the better repairing backup.
Territories are a frequent bone of contention. This may be due to the loose definition of boundaries placing one distributor in conflict with another or it could be the result of the carving up of one area into smaller units.
Therefore, as a successful manufacturer, you have to keep looking after your distributors, and give them the strong support not only asking for taking bulk in the end of the year! The management skill is anytime and anywhere!