The Power of Partnering
Some distributors and manufacturers desire to remain in their prescribed industry categories--distributors selling and manufacturers producing. That makes sense for companies that gain a business advantage by staying steadfast to those roles. But doing so isn't a requirement for succeeding in today's supply chain, and--truth be told--it hasn't been for years.
Some manufacturers sell directly to end users, often limiting their sales forces by product line or geography. That doesn't mean they view the distributor channel as unimportant. Some distributors produce products, often limiting their purchases to digital presses or other niche-specific equipment. That doesn't mean they view manufacturers as unnecessary.
The inner workings of the printing industry supply chain are interesting, but how much do end users care about them? The correct answer--that they don't give it one iota of thought--is telling and leads to an important truth: End users have the power. It's their problems that need solutions, their questions that need answers and their ability to speak with their wallets that matters.
Distributors, manufacturers and suppliers don't work in concert enough with end users' plans and fears in mind. Exceptions to this statement occur daily, and plenty of firms take supply-chain partnerships seriously. But plenty don't concentrate on developing shared technology, building trust, improving communication, creating integrated marketing campaigns and outlining mutual goals. It's a challenge most industries face, says Industrial Performance Group Inc., a Northfield, Ill., firm that helps manufacturers and distributors improve their sales volume and customer loyalty. The company recently conducted a study of supply-chain partnerships, and the results are striking: 82 percent of manufacturers and 92 percent of distributors believe that sales performance and profitability are negatively impacted by problems in their working relationships. (For more statistics, see page 48.)
The companies best suited to grow know how to collaborate, not just compete. They work with supply-chain partners to identify and respond to market changes. They're focused on reducing costs associated with moving goods through the channel, and they do so together. They understand the importance of "win-win" negotiations. In our cover story, "Partners for Growth," beginning on page 38, we feature three partnerships that embody these concepts. The partners' high levels of commitment to each other have solidified their end users' commitment.
Strategic, creative alliances are appearing throughout the industry, and good for us. The likely results are stronger bonds among distributors, manufacturers and suppliers, and (more importantly) value to end users.
Darin Painter
Managing Editor
Profile Wins International Award
Managing Editor Darin Painter's September 2003 story, "This Life is One Cool Gig," won Gold in the Focus/Profile category of the Tabbie Awards from Trade, Association and Business Publications International (TABPI). The feature was a profile of Phil Schmidt, president of distributorship Advanced Systems & Forms Inc., Livonia, Mich., and president of DMIA. The competition, open to any English-language business publication, drew 300 editorial and design entries from North America, Europe and Asia. Painter has won eight awards for personality profiles published in Print Solutions.
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