__p It’s a mundane routine that has been stretched for too long. The channel these days seem hardly enthused to hear of vendor innovation and vision. What is missing in most vendor presentations are candid results, return on investment (ROI), and better execution in the distribution process.
p____p Long-term service and support still remains a key factor in a healthy relationship with the vendor. Is price of any importance to the reseller if the support that is required remains long neglected?
p____p Most distributors are of the opinion that desperate vendors promise the moon only to retract from their commitment and default at a later period. It is surprising to note that while placing the blame on vendor commitment issues, most resellers themselves fall prey to the luring bait. In the process of biting more than they can chew, resellers’ voracious appetite for business often leads to overstocking more than they can deliver.
p____p The growing imbalance at the negotiating table between the first tier and second tier of distribution is a cause for concern. Perhaps, as some distributors say, they would like to see tighter contracts being honored with vendor and distributor understanding. The best way for both parties to stay realistic would be the ‘added teeth in the agreement’ so that they can eliminate the deteriorating effect of sub-par performance.
p____p Distributors should select only those vendors who make business sense in the long run and identify what vendors consider as important in negotiations. Vendors, in contrast, are known to do their homework well. The discerning quality of collecting and analyzing data on the history of the distributors’ past relationships goes a long way in determining fruitful future relationships.
p____p As the business environment continues to evolve, so must the underlying processes. Unfortunately, distribution outfits tend to ignore process problems until it’s too late.
p____p At the end of the day, what matters most is how viable the vendor’s business model is with regards to the distribution understanding and whether the implementation is feasible for the entire rung of channel involved in the transaction.p__