distribution partner management

Distribution partner management deals with issues that determine the structure of the relationship between manufacturer and distributor.

The behavior of dealerships is central to the formation and consolidation of a manufacturer’s brand image. Therefore, it is even more important to select distributors according to predefined quality standards and to manage them using efficient processes. Important regular guiding questions for distribution partner management are:

• How is the trade level justified in the business model and what opportunities and risks does this entail?
• What proportion of turnover do the most important distributors account for and what is the division of power between manufacturer and distributor?
• Which distributors are still suitable partners?
• How can distributors be segmented, and strategic sales partners identified?

The performance of distribution partners is particularly relevant for manufacturers who do not have direct market access or who pursue broad market coverage.