Ten years ago, our industry roles were more defined: Distributors distributed products, and manufacturers manufactured them. Today, customer demands have caused the line between distributors and manufacturers to blur. Distributors are selling a broader range of products, including direct mail, office supplies and commercial printing. Some are adding in-house capabilities such as digital presses and mailing equipment. Meanwhile, in order to keep equipment running, many manufacturers have begun selling to new channels, including quick printers and end users. Customer demands are driving these changes.
No matter our size or business philosophy, each company in the document industry wants to make a profit and bring value to end users. The ways in which we accomplish those goals are vastly different, but it's important to recognize the importance of all members of the supply chain. For our industry to be effective in the future, distributors and manufacturers need to get together--around conference tables, on telephones, on golf courses--and discuss how they plan to do business in the future. How can our relationships improve? What new timesaving services can we offer one another? Should our current roles change? Should we find new business partners? In order to understand each other's future direction, we must be straightforward.
Open communication between distributors and manufacturers leads to integrity, candor and trust. We should be comfortable when deciding to continue, expand or end our business relationships. When one company exploits another, customer loyalty and profitability deteriorate quickly.
Distributors and manufacturers can't afford to have that happen--literally. We need to raise our levels of trust instead of rolling our eyes. We need to talk about ways to bring value to end users through new, efficient services such as online ordering. At my company, Belknap Business Forms Inc. in Mayville, N.Y., we've added warehousing, distribution and other capabilities. Why have we evolved? Customers said they wanted us to. The more we listen to them, the more successful we'll become. The same holds true for any company whose success depends on quality service.
A better understanding of our distributor/manufacturer relationships can help us reach our full potential as solution providers. If you're wondering where your business partners are heading in the future, make it a point to ask them. They might be wondering the same thing about you.
Let's not take our relationships for granted. Instead, let's discover how to make them stronger. Our collective success as distributors and manufacturers depends on how well we can do this.
In order for distributors and manufacturers to build successful relationships, we must first understand each other's vision, goals and challenges--especially because strategies are changing so quickly. Too often, we mistakenly assume our business partners will sell and communicate the same ways they always have.
