Design Con 2015

A Rational Look at Distributor Rationalization

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FreeBird
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Stock Keeper
Rationalization
FreeBird   2/4/2013 8:41:39 PM
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I can also see an advantage in terms of EOL product. Instead of a distributor selling off inventory after its has parted ways with a supplier, allowing that distributor to manage that inventory until it's gone can assist customers with long-lifecycle products. A win win for the distributor and its customers.

Ariella
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Supply Network Guru
Re: Sounds like a way
Ariella   2/3/2013 6:27:56 PM
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@Bolaji would that constitute life imitating art, or art imitating life?

Bolaji Ojo
User Rank
Blogger
Re: Sounds like a way
Bolaji Ojo   2/3/2013 3:14:53 PM
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The movie stars Rich Krajewski appearing as Rich Krajewski!

Bolaji Ojo
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Blogger
Re: Sounds like a way
Bolaji Ojo   2/1/2013 10:38:50 AM
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Rationalization is a way to admit you've messed up. Failing to manage that process properly could be an even bigger screw up

rederringer
User Rank
Blogger
Re: Sounds like a way
rederringer   1/31/2013 9:47:05 PM
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Hi, Rich.

Thanks for the intriguing post! I have sometimes joked that suppliers are quick to terminate Reps, but not distributors, because Reps don't hold stock. I'm sure there is more than one instance where reclassification as a Master Reseller was done to mitigate the impact of inventory return. Still, in a well-designed program, a master distributor is in the best position to gain value from existing inventory as part of the agreement to serve Master Resellers.


Also, suppliers may appoint new distributors as Master Resellers, allowing the  Master Resellers marketing privileges. The master distributor will handle service and logistics. A win-win-win-win situation for all parties (end user included)!



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