Tuesday, 31 May 2011

Good distribution relationships go in two directions

In the distribution business the relationship with the manufacturer can be just as critical to sales success as the relationship with the customer.
Steve was the Branch Manager for a sales center with customers in Maine. When a tornado and extreme high winds destroyed a number of above ground swimming pools in Southwestern Maine he earned long-term loyalty and a lot of future business by connecting the retailer (who had originally sold those pools and was now trying to service and repair them) directly with the customer service staff at the manufacturing plant. He first outlined the exact situation and received a true buy-in from the manufacturer then he stepped away from the process to help speed it. Service and repair parts were shipped immediately based on phone calls from the field and all normal purchase order steps went out the window. This meant that days were taken out of the process and everything was expedited. At the end of a month of this no-red-tape service everyone reached an amicable settlement and the manufacturer helped out by donating many of those parts to help consumers and their loyal customer.
Exception value provided to customers and suppliers is the hallmark of a true world-class distribution company.

Friday, 6 May 2011

The importance of a 3-minute elevator speech

Caleb had just been promoted to an outside sales (BDR) position. He accepted the challenge of trying to establish a relationship with a large retailer that belonged to a buying group...
...which allowed him to buy large quantities of product directly from manufacturers (eliminiating distribution). Caleb couldn't get by the gatekeeper when trying to phone for appointments but (mid-summer) happened to be in the area of the main store and just stopped in. The owner was not in but, by luck, he met the purchasing agent.. Taking advantage of a short face-to-face meeting, Caleb used his 3-minute "elevator pitch" about expense of carrying inventory, space and personnel required for handling large orders, damage and inventory taxes, etc...all as opposed to direct delivery to consumers that he was proposing. The PA was impressed and set up a meeting with the owner. the relationship has bloomed as economic challenges have made "just in time inventory control" more important than ever. Caleb's branch carries more inventory specific to that customer now and even drop-shipments of products are now coming through Caleb. Bottom Line...an account that usually did about $30,000 went to $100,000 then $300,000/year. Is your "3-minute Elevator Speech" perfected? You always need to be ready!