Distributor – Supplier Etiquette

Lately I have been thinking about Distributor-Supplier Etiquette; or should I say the lack there of.

As our industry accelerates through technology and demographic changes, we find ourselves with many new players on both sides of the distributor/supplier relationship. Training for supplier/manufacturer employees is directed toward products, customer types and factory programs instead of building a better channel.  In addition, the demographics in our industry are forcing generational interaction; so we find baby-boomers and millennials seated at the same table trying to communicate.

The chasm between partners widens; often based on simple lack of professional courtesies.  Miscommunications and friction between distributors and their upstream partners are building.  And, for some strange reason, nobody seems to be talking about it.

I want to bring this front and center.  To prime the pump, allow me to share a bit of the bad.

A Good Example of a Bad Example
Just a few weeks ago, I was invited to sit in on a distributor/manufacturer planning meeting.  The distributor had a long relationship with the manufacturer, and even though the distributor was producing strong sales results overall, a couple of key product lines were lagging.  Earlier in the year, the distributor and their supply partner had laid out an improvement plan.  For all intents and purposes, the plan had been a success; measurable results pointed to a significant turnaround.  I anticipated a positive working meeting to continue the efforts.

As we gathered in the conference, I couldn’t help but notice an air of nervous energy amongst the manufacturer’s people. The supplier’s local team members positioned themselves together on one side of the conference table, the distributor team members on the other (which is a topic unto itself.)  After a few social niceties, the supplier’s regional manager turned to the other group and bluntly stated, “We are here to understand what you are going to do for us in 2015.” After the distributor outlined 10 or so programs in place and plans to add more resources in the coming year, the regional manager said, “Good, put them on paper, and I will let you know if that’s enough.”

I couldn’t help myself, this was an expensive meeting with more than nine people in the room.   I held back as long as I could but had to ask, “Isn’t this about joint planning? Shouldn’t we discuss how we can make things work as a team?”  It was at that point the regional manager dropped the neutron bomb of distributor/supplier dysfunctional relationships.

“We are the ones who make the decision as to whether you are doing the right things.  Don’t forget who’s in charge here.  We are the manufacturer, you are the distributor.  We’ll tell you if you’ve got it right.”

While the words may not be dead-on accurate, they are mighty close.  The implication, tone and style conveyed the same meaning.  I could have suggested a hundred (maybe a thousand) alternatives.  The point is the comment was certainly not productive.  And, definitely not demonstrative of good etiquette.

I am interested in gathering your thoughts on distributor/supplier etiquette.   And, I am not being one sided. We are a team.   Distributors sometimes lack etiquette as well.  Respond with your favorite social faux pas.  We will reward the best one with a $25 Amazon Gift Card.