__p Distribution efficiency is slated to be the next frontier in the industry, and as unit growth slows and channel margins pose a huge challenge, the only hope that the channel holds is that margins will materialize from services wrapped around products. Choosing the right distribution channel is crucial to the success or failure of a reseller’s business.
p____p Many distributors are so busy resolving technical issues that the business of creating demand has been left neglected. If a distributor does not understand this role, the channel certainly suffers as the delivery of goods and services lags behind.
p____p Apart from helping find sales opportunities; distributors need to assist its channel in closing deals quickly. The need to understand a vendor’s product line and future road maps, receive training, knowledge on technical issues and happenings in end-user markets falls in the hands of the distributor, and it is the kind of treatment meted out to the channel that determines a distributor’s success in the channel space.
p____p If resellers realize that it is their job to find opportunities and push distributors to provide tools to close deals more quickly, together they could push the market forward.
p____p While I was pondering about the kind of criteria that would determine the winner for the forthcoming MPD 2004 (Most Preferred Distributor Award), the one obvious standard of measure that stood out was – service. There is nothing that demands a reseller’s attention more than the kind of service a distributor provides. The message of change appears to be getting through and today the ability to identify the best distribution channels has never been more vital.
p____p There still remains a tremendous amount of opportunity to deliver value in the market. Distributors fill an important role in our industry, and it will continue to do so. An increasing number of small distributors will continue to focus and execute on a singular approach to become the most expert in their arena to survive. These distributors will help to reinforce the notion that closeness to the customer and a high degree of expert service are still needed and valued by the end-user.