Distributor Strategy
Finding, selecting channel partners
The drive by chemical producers for greater operational efficiency and cost savings has contributed to the recent trend of outsourcing sales and logistical services to chemical distributors.
It is now widely accepted that the chemical industry cannot operate efficiently without the support of effective and modern channels of distribution.
As a chemical producer, one of the most important strategic decisions your company has to make is selecting the most appropriate distributor for your business in a particular region, country or market segment.
Depending on your objectives and strategy there could be a number of different distribution options open to you. From the large multinationals to nationals or even speciality distributors focused on a particular segment.
Finding the right channel partner can be a difficult process to manage and get right, particularly if your company's base is geographically distant from the target market.
Managing a network of distributors
Finding the right channel partner is just the first step.
If your distribution network is going to be successful you need to be able to manage it effectively.
Distributors need on-going support and Principals providing good levels of technical, marketing and sales support will quickly gain a distributors long-term commitment and loyalty.
Equally you'll have expectations about the performance of your distribution network.
How often are your distributors visiting prospective customers and are they meeting agreed sales targets?
Then there are issues about communications, openness and the reporting of information about markets, customers and competitors - all critical feedback for evaluating your market position and strategy.
If you are geographically remote from the market then managing your distributor network can be problematic. It is difficult to visit the distributors as often as you would like and sometimes communications and support aren't what you would like them to be.
A solution could be to use a trained and experienced local partner to manage, visit and support your distribution network – as an addition to, not a substitute for, your on-going support.
How Chemagility can help support the development of your distribution network?
- Distributor research and selection.
Chemagility can help you find and select the right distributor for you.
We use our database of over 6000 chemical distributors/agents together with our knowledge of the industry to identify a small number of candidates that most closely meet your requirements.
We will then interview these distributors, assess their suitability against agreed criteria, and then arrange for you to meet the 2 or 3 best candidates. - Distributor management.
Chemagility can provide support by regularly visiting your distributors, monitoring their performance and providing feedback on their activities.
We are aware of the issues that affect the success of chemical distributor/producer relationships - from both sides of the fence.
