Retail Observer

RETAILOBSERVER.COM FEBRUARY 2018 52 D ealers today can't afford to underestimate the role that distribution can play in growing both their assortment and their bottom line. While most retailers already utilize a distributor partner for some part of their business, are they really leveraging everything they can do? Sure, they are great for fill-in items or special requests, but what about the cash flow benefits associated with just-in-time inventory? An important benefit of distributors is that most allow you to net the instant rebate that is available from cost when you buy the product, meaning you don't have to spend time and energy filling out paperwork and chasing your profit dollars. Not only that, as manufacturers raise their direct account limits, retailers often find themselves forced to order above run rates to maintain direct relationships, using up their valuable open-to-buy. Another side of the CE business, the custom integrator channel, embraces distribution as the most effective vehicle to source their products. In fact, there are more than forty different distributors serving the CE/CI marketplace today. Hundreds of manufacturers make these distributors the only place to get their products and business is booming on that side. CI dealers know they can get what they want, when they want it, from a distribution partner. They've learned that it's the best way to be successful with consumers that know exactly what they want and want it now. Vendors are also seeing the benefit and more of them are turning to distributors to help serve their customers better. Distribution allows them to run lean and helps deliver better product margins to dealers due to distributor overhead that is lower than if they did it all themselves. In many cases, vendors will extend display programs, spiffs and other direct relationship benefits through their distribution partners. The scale of a good distribution network means that retailers no longer have to forecast their volume, meet high single vendor freight minimums, and/or assort many more products than they are comfortable doing. Dealers also can't afford to overlook the power associated with having access to the top brands in retail today. Partnering with the right distributors allows you to have a line card on par with the major retailers and can give you access to highly protected brands. Today's customer can and will get it elsewhere if you don't have it, or aren't willing to get it. So, engage with the right distributors to make sure you don't lose a single sale. Distribution is not just your warehouse, but also a key source of knowledge and the high touch service you deserve and require. Most sales representatives from Distributors are local to your area and they are specialists in your channel. They have a full basket of products to sell you, not just one line, meaning they are uniquely positioned to provide you with not only vendor specific support, but industry information as well. As you can see, there are many reasons that utilizing a local or national distributor can help you grow your business. Don't say no to distribution, keep an open mind to the benefits they offer beyond the cost of goods. Times are always changing in this industry—change with the times and keep your business growing. Ryan Calacci Consumer Electronic Trends Ryan Calacci, eXchange Merchandising Manager, Nationwide RO THINK DISTRIBUTION FOR TODAY'S JUST-IN-TIME, CASH-FLOW-FRIENDLY, INVENTORY SOLUTION

• Cover