Distributors Are The Main Buffer Between End User and Manufacturer

HOW MANUFACTURERS CAN HELP Because distributors are the main buffer between end user and manufacturer, the more information the manufacturers can provide to that buffer, the better the situation. For example, because end users are demanding improved product quality, distributors need to know from manufacturers how they can show the customer a product is superior. That may mean increased research and development investment based on customer input and needs, White said. It also means providing the best marketing tools the manufacturer can afford to create. "The more information you put out there about your success stories and applications," the better the distributor can convince an end user the product is right for the job, she pointed out. THE RIGHT STUFF Andy Brown of Mid-State Supply agreed with White that good information is key to the distribution industry today. He also pointed out that a main challenge in that industry at present is training—not training within the ranks of manufacturer or distributor, but educating end users. "We all want sales … but ultimately, what I want to know is that the valves I sell are the right products going in the right service as well as properly installed and the best product for the job," he said. "We have to get our customers out there to understand what our products do," he added. From the manufacturer's standpoint, that means getting the distributors—the guys in the middle—the information they need to know how the products work so that when staff walks into a sales meeting, they can offer the best solutions possible, he added. Brown and his co-worker, Ben Hurst, defined three main issues they see affecting distribution today: quality/integrity; sense of urgency/service; and pricing. Quality/Integrity: A main concern today for end users is the balance between quality and cost savings, especially in cases where products coming from overseas are marketed as domestic products. Because of this "in our opinion, one of the most important things we do is to test every valve," Brown said. This issue will only get tougher to address going forward as "people in the future are going to hold products to standards probably 10 times what they are today," he said. Training comes into play here, too, he said. "I can't tell you how many people go out and install a valve without any training. We must ensure that end users have the experience they need in field installation and maintenance," Brown said. Sense of Urgency: In distribution, deadlines are paramount to the business, and that doesn't mean just deadlines with bidding out a job or fulfilling an order—it also means follow up. "Whatever issue the end user is having, we need to be able to react to their needs the minute they have any issues," Brown said. Pricing: Although pricing will remain a key in distribution, "quality is remembered long after price is forgotten," Brown said. "Our request to manufacturers is this: Don't get your product on the market by driving down the cost. Let's focus more on how we can truly build a better mousetrap, then follow through and educate users how to put it in," he said. ACCOUNTABILITY Brown's associate Ben Hurst said another issue in distribution today is accountability/traceability of what's happening with products. "There is great demand for associated paperwork today," he said. Whereas, "a long time ago, making valves seemed like the hard part, now the hard part is providing all the paperwork" that can back up a product's claims, he said. Like White, Brown and Hurst point to quick delivery as key to doing business today, and they added that speed is needed for proposals, as well as product delivery and follow up. "It amazes me that on one morning today you can get a request for a million-dollar valve order the end user needs by the next day," Hurst said. But success in distribution is a combination of quick delivery, product quality, expertise and service after the sale, Hurst and Brown pointed out. At the same time, manufacturers need to "make a stand. Realize you can't be the ones chosen all the time. First and foremost, you should feel good about the products you're selling," Brown said. Source: valvemagazine.com