Final Reflection Paper

This course displayed how relationships in the business of distribution actually work. This paper will cover what I learned from this course, how that knowledge was implemented in the group project, how my experience from this course will affect my career, and how important manufacturer distributor relationships are. There are many things I learned this semester, but a few stood out more than others. First, good business starts with strategic relationships. The customer and manufacturer relationships must be of high quality. The customer relationship with the distributor can be accessed with a customer stratification model. The profitable relationships can be determined by this model. Which, is done by comparing metrics of sales volume, gross

Second, a distributor’s main asset is their control of customer information. This information can be specific to the customer, or feedback on a certain product. If the manufacturer had this information, the value the distributor provides can deplenish. Distributors must weigh the pros and cons of giving up valuable information, while still staying loyal to both the customer and manufacturer. Third, from research I have found that there are two types of distributors. For technical distributors, it is common to not have a private label. The expertise of products their vendors provide is not easily replicated, and therefore not profitable. Although, commercial distributors can make private labels profitable. The products they sell can be easily replicated by a third

Trust is important throughout the channel. The customer needs to trust the distributor, or the distributor won’t produce a sale. The distributor needs to be able to trust the manufacturer as well. For example, a manufacturer is not fulfilling orders consistently. The distributor should evaluate the manufacturer to determine if that relationship is worth having. Conflict is another piece of success in a manufacturer distributor relationship. Resolved conflict is a good thing. This is a sign both parties are working to make things better. However, unresolved conflict is destructive. If both parties fail to come to an agreement, effective business will not be done. Neglecting problems and conflict is detrimental to the business as well. The relationship should be an alliance. Both parties act on the same team for each other’s benefit. This is seen easily in exclusive distribution. In summary, these three keys are essential to the