VIEWPOINT
DISTRIBUTORS – MORE THAN A NECESSARY EVIL?
Distributors: an added cost or a supportive partner, asks Aaron Frogley, Merchant Sales Direct at SIG.
THE RELATIONSHIP BETWEEN merchants and distributors is always a subject for lively discussion, but we need each other. More than that, I’d say that when trading conditions are tight, a real partnership with a distributor can improve business efficiency. Here are five reasons why.
Breaking bulk Of course the very cheapest prices will come directly from the manufacturer, but there is a cost associated with storing the minimum delivery quantity and in tying up cash in stockholding. The alternative is to lean on the distributor to hold stock. The distributor will be acting effectively as an extension of the merchant’s warehouse with products being called off after a quick phone call and delivered directly to site when needed. Seamless service to the merchant customer, with some cost efficiencies for the merchant business.
Product knowledge Just as important, however, is the technical support to meet contractor’s needs. Merchant staff will be very well informed, but they can’t possibly know about every product or be up to speed with availability.
Faced with a contractor asking for products that simply aren’t on the usual stock list for a branch, what’s the best response for the merchant? I’d suggest that it’s a quick call to a distributor. Backed by warehouses stocked with the widest possible range of products from both major brands and niche manufacturers they should be able to source what is needed quickly and with minimal hassle. And when products sell out
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or go on allocation, it’s wise not be to too tied into a single manufacturer but instead to rely on the distributor to identify potential available alternatives.
Building business Online ordering can offer merchants an opportunity to spread their geographic net wider and this is another area where distributor partnerships can help.
Few merchants would put their entire product range on their online ordering sites. Instead, merchants can agree a core list of products with a distributor and entrust them with delivering that product range directly to customers’ sites instead. Wherever in the country that may be. It’s now perfectly possible to provide a reliable online supply service into a new region without having to invest in a bricks and mortar premises immediately.
Specialist advice Larger distributors can afford to invest in product specialists who really understand their categories and what options are available in each. This is not just about having a broad knowledge of individual products, it’s about understanding how they might be combined into systems. Such specialists are a great resource when a merchant is faced with a customer specification involving complex or unusual requirements. They are able to get involved at the design stage of a project where necessary, sourcing those unfamiliar components and sharing knowledge in specialist areas, understanding the exact role that specialist products can play in achieving the performance required.
Nevertheless, there is always value for merchant staff in finding out more from manufacturers and distributor / merchant days can provide a priceless opportunity to learn about specialist product groups. These sessions, typically hosted at a distribution branch, will be tailored to the needs of the merchant. They’re ideal for providing up to date insight into product choices available, with manufacturers very much part of the process.
Compliance and competence
Keeping up with the latest product information can be daunting and is always time consuming. With the implementation of the Building Safety Act it’s also becoming more important.
It is no longer enough to hand out a piece of product literature that’s been lying around in a literature rack for no-one knows how long. The supply chain is increasingly expected to ensure that the product information being used as the basis for specification is both up to date and reliable.
With their huge buying power
and centralised information sources, the distributors are well positioned to monitor changes to product information and to work with supplier customers to ensure such information is fully compliant with the latest regulations. Distributors are increasingly moving towards providing links to online product information in preference to printed literature. The online information will be automatically updated when anything changes, removing another time-consuming administrative task for the merchant.
I see merchants and distributors as very much part of the same supply chain. Our businesses succeed when our customers are delighted with the service we provide.
The distributor will be well positioned to handle much of the administrative work that can drain energy and resource from merchant branches. An effective partnership should free up time, allowing the merchant to focus, without distraction, on building the closest possible relationships with their customers. BMJ
www.buildersmerchantsjournal.net May 2024
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