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The Future of Manufacturer/Distributor Relationships: Industrial Performance Group’s Survey Results

Industrial-Performance-Group-logoIn a previous blog post, Robert Nadeau, managing partner of Industrial Performance Group, Inc., talked about several trends he’s seen emerging in the relationship between distributors and manufacturer.

Nadeau found that prolonged economic uncertainty, intense competition, razor-thin margins and the ever-shifting sand of government regulation are just a few of the challenges faced by manufacturers and distributors. He believes that the actions being taken by manufacturers and distributors in response to these challenges are changing the very nature of their working relationships, and asked for input from both sides in a survey about the changes due to the downturn in the economy.

CollaborationIndustrial Performance Group’s research shows that the cornerstones of a solid manufacturer/distributor working relationship are common goals and two-way communication. They find that when both parties work toward a common goal and communicate on a regular basis, the level of conflict is usually low. And any conflict that does exist is usually positive in nature and can move the relationship forward in a constructive manner.

In their recently completed survey of 375 manufacturers and distributors, they found that the level of destructive conflict between many manufacturers and distributors has increased while the level of communication has declined.

The good news is that there is a small group of manufacturers and distributors who are doing a very good job of navigating their way through the turbulent waters caused by the current state of the economy. How are they different from the rest? Nadeau lists three key areas in which these manufacturer/distributor partners excelled, allowing them to adapt to our new economic environment. You can view these and the entire article in IPG's current newsletter by clicking here.

Tribute, Inc. facilitates the distributor/manufacturer relationship by partnering with major manufacturers to streamline the supply chain and save their distributors money. Those that carry Bosch Rexroth, Eaton, Gates, Garlock, Parker Hannifin, and Pall, among others will find that Tribute offers time and money saving advantages to their distributors.

Industrial Performance Group
Highland Park, Illinois
800.867.2778
www.indusperfgrp.com

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Tribute, Inc. is a provider of ERP business management software for distributors and system integrators in the fluid power, hose, motion control, automation, fluid handling & pump industry who provide value-added services.