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GAWDA
Distributor/Manufacturer
Survey

Results point to intense challenges and some successes.

At the end of October, GAWDA Distributors and Manufacturers/Suppliers responded to an e-mailed survey that appeared in the GAWDA Connection. No specific answers were given for respondents to rank, and the questions were purposely left open to see what responses would be generated from both groups.

While individual names, titles and company names were optional, 75% of the Distributor responses were signed; 60% of these were executive positions (president, CEO, vice president); 36% represented management (sales manager, branch manager, purchasing manager, etc.) and the rest (4%) were sales personnel. Of the Manufacturer/Supplier responses, 68% were signed: 28% were executive positions (president, vice president); 64% were managerial (product manager, sales manager, marketing manager, etc); the rest (8%) were sales personnel.

Summaries of the responses from both groups are listed on these pages. Responses are listed in order of most to least given. The complete survey, with the entire list of responses and percentages, can be found here.

One respondent commented, “If we don't agree with the results of a study, we convince ourselves that it is not applicable to us, that we are different, and keep on with business as usual.” As you will read, the responses from distributors and manufacturers/suppliers are indeed thought-provoking. With this survey, GAWDA kicks off a year-long discussion about the relationship between a distributor and manufacturer/supplier, hoping to dispense with “business as usual” in the coming year, bringing both the successes and the challenges to the table.

Distributor Responses
Top 10 Things that Make Manufacturers/Suppliers Special
to their Distributors
  1. They communicate well and are easy to do business with.
  2. Delivery is fast, complete and accurate.
  3. They provide good sales support/service.
  4. Pricing is fair and competitive.
  5. They offer a quality product.
  6. Their knowledgeable sales reps work well with our salespeople.
  7. Our relationship is a true partnership.
  8. They do not sell direct.
  9. They have flexible purchase and return policies.
  10. They offer financial incentives, rebates and
    discounts.
 
Manufacturer/Supplier Responses
Top 10 Things that Make
Distributors Special
to their Manufacturers/Suppliers
  1. They don't take on competing lines.
  2. They market well and can generate leads.
  3. They stock adequate inventory.
  4. They are honest and trustworthy.
  5. Sales force is well-trained.
  6. We work together on sales calls.
  7. Provide market feedback and info on pricing issues.
  8. They look for new and better ways to do business.
  9. We have a good personal relationship.
  10. They suggest how we, as manufacturers, can improve.




GAWDA Manufacturers/Suppliers Say Why Things Have IMPROVED
“Increased communication efforts-newsletters, advisory boards, quarterly meetings, visits, end-
user calls-have increased the distributors' level of trust for our company, as well as the benefits
we have derived from a better understanding of our distributors' business.”
“We work with fewer distributors and only with those who show a desire to actively create
a demand.”
”More distributors are making more of a commitment to our line as they consolidate
vendors.”

GAWDA Distributors Say Why Things Have IMPROVED
“Defined criteria have helped us become closer, more upfront and open.”
“Our focus is on fewer, better vendors. The result is stronger, more open relationships, and we depend on each other more.”
“Order fulfillment, product support and Internet support have combined to make the purchase/inventory/sales process much more efficient.”

GAWDA Manufacturers/Suppliers Say Why Things Have DECLINED
“Distributors want more and more discount but they seem less willing to earn it. No inventory, no sales training, no accountability, no field sales calls, no product demand creation, no ability to sell productivity to the end-user.”
“Our focus is on fewer, better vendors. The result is stronger, more open relationships, and we depend on each other more.”
“Order fulfillment, product support and Internet support have combined to make the purchase/inventory/sales process much more efficient.”

GAWDA Distributors Say Why Things Have DECLINED
“Suppliers view us as an impediment between them and their customer rather than as a customer.”
“Suppliers' salespeople lack the ability to answer the tough questions.”
“They flood the market; there is virtually no exclusivity.”
“Relationships have changed with mergers and buyouts; not as personal and close as it once was.”

GAWDA Distributor Says Why Things Have IMPROVED and DECLINED
“Some suppliers improved by having 'two ears and one mouth,' rather then telling us how great their product is without really listening to our needs. Other suppliers are under so much pressure to turn product that they do not spend the necessary time to understand and learn everything they can about their customers.”

GAWDA Manufacturer/Supplier Says Why Things Have NOT CHANGED
“There is still a lack of commitment from distributors. Most have several competing lines available so they can say to customers: 'I can supply that, too, and here is my lower price.' ”

Distributor Responses
Distributors' Most Important
Expectations of
Manufacturers/Suppliers
  1. Provide service/technical support to resolve problems.
  2. Manufacture/supply quality products.
  3. Delivery is prompt and on-time.
  4. Price is fair and competitive.
  5. Product is readily available.
  6. Communicate honestly and well.
  7. Sales reps have good product knowledge.
  8. They value exclusive distribution; do not sell direct.
  9. We have a consistent relationship.
  10. No mistakes in billing.
 
Manufacturer/Supplier Responses
Manufacturers' Most Important
Expectations of
Distributors
  1. Create demand for our products and aggressively grow sales.
  2. Be honest, trustworthy, and have integrity.
  3. Work at improving, and have a desire to be better.
  4. Know our products and promote them.
  5. Stock inventory.
  6. Think of us as a business partner, not a supplier.
  7. Pay their bills.
  8. Offer good customer service and support.
  9. Give us feedback on products, especially new products.
  10. They make a commitment to us and stick with it.

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Welding & Gases Today • Winter 2003 • Volume 2, No. 1 • Entire contents are Copyright © Data Key Communications, Inc. • All rights reserved. • Nothing may be reproduced in whole or part without written permission of the publisher.