Several years ago, companies in the document management industry drew a line in the sand. Distributors stood on one side, manufacturers stood on the other, and woe to the heartless souls with the audacity to cross. As the line began to disappear, so did the notion that allies were only allies, that competitors were only competitors. Forming partnerships with other distributorships or firms on the industry's periphery used to be sexy. Today, it's necessary.
Firms are buying from and selling to the directs, aggressively seeking partnerships with competitors, and looking for alliances with companies such as service bureaus, software developers, database-management firms, mail houses and advertising agencies. Instead of agonizing to fit each customer and partner into a specific category, more companies are finding new markets and sales channels.
Smart leaders recognize attributes of other firms and leverage those capabilities with their own. They do this for an excellent reason--the betterment of end users. Some companies might make "strange bedfellows," but they're mutually focused on providing increased value to clients.
Creating an alliance is the best strategy small and medium-sized companies have when going after large accounts with multiple locations. Last month, I read about how more than 25 advertising agencies banded together to go after Chrysler's marketing business. The automobile manufacturer was giving credence to the idea, mentioning the flexibility and high service levels the alliance could provide.
In our own industry, as the story beginning on page 92 explains, medical group purchasing organization Premier hasn't ruled out the possibility of working with regional suppliers instead of the majors when its forms management contract with Moore and Standard Register expires Nov. 30, 2003. Bob Juerjens, director of support services for Premier, says he doesn't expect to extend the current contract. Think of how powerful a well-organized, service-oriented group of independent distributorships could be for those hospitals.
Companies that form alliances must hammer out necessary details--how to share costs, how to present ideas to prospects jointly, how to divvy up profits--so it's important that all parties trust each other and accept prescribed roles.
Trust has strengthened between many distributorships and manufacturers. Their relationships have become more visible, as distributors ask their vendors to take active roles with end user accounts instead of hovering in the background.
Healthy alliances are forming between manufacturers, too. Smaller printing firms are pursuing partnerships with larger national companies such as the directs or large office products suppliers. Larger printing firms that don't want to handle small-quantity orders are seeking relationships with independent manufacturers.
Don't allow your company to ignore possibilities just because they're not traditional or seemingly comfortable. By partnering with peers or aligning your firm with ones on the fringes of the industry, we independents can improve the viability of our channel. Partnerships and alliances give us extra clout. Your company should no know boundaries.
Mark Trumper is CEO of Maverick Label, Edmonds, Wash., and president of DMIA.
