Issue link: https://www.e-digitaleditions.com/i/51756
on these functions and measure each other accordingly." Shared metrics were the result. All parties removed cost and not only increased their profitability with each other, but also were able to take those improvements to other customers and suppliers. Study the model. Unfortunately,what typically happens in most industries has more to do with the intangibles and is short on hard measurements. One exec talks to the other exec or the salespeople on the dealer side talk to the salespeople on the manufacturer side and the conversation lapses into he said/she said andwhy did- n't you…If you're really going to start a partnering initiative, you can't just say here's where you need to improve.You must do the metrics so that you can truly remove costs from both sides of the fence. The key factors usually come down to market share, broader line support, quicker and consistent response (from both channel partners), demand cre- ation as well as response, and pricing optimization.Problems occurwhen you mix business partnerswho use different metrics to define success, conflicting tactics for achieving success, and indi- vidual perceptions of historical and interdependent relationships. What ManufacturersWant In independent studies conducted this year in three industries—plumbing, heating, cooling and piping; air condi- tioning equipment; and factory automa- tion and machine control—manufactur- ers cited a desire for more accountability from their dealers, individual company growth and alignment, more effective sales, and something called loyalty from their dealer partners. For example, 68 percent of the 182 suppliers surveyed in a pilot study for the PHCP and HVAC wholesale distribution industry, said they would like to have greater account- ability with their existing distributors; but the general feeling was that without accurately measurable growth require- ments, many distributors would remain comfortable with their current market size, profitability and strategies. And when asked to list their top three criteria continued on page 12 What are the 5 Attributes of Your Ideal Channel Partner? Distributor Responses Fred Singer, President Singer Restaurant Equipment 1. Show appreciation for and provide meaningful incentives for creat- ing specifications and placing product. 2. Manufacture innovative products with a strong value proposition to end users. 3. Assist in demand creation and direct that demand to supporting deal- ers. 4. Stand behind their products and help dealers resolve quali- ty/performance issues in the field. 5. Create policies that support the profitability of their dealers, believ- ing this will result in profitability and growth for them. Paul Ellingson, President Bargreen-Ellingson 1. Honest and Ethical. They really need to be on the same page with us on this one. In other words, their values need to be consistent with ours. I will use my 41-year-old marriage as an example. Linda and I are quite different people and in many ways, hold different beliefs but our values are the same, thus allowing us to have a strong partnership. 2. Walk the Talk. This attribute goes hand in hand with my first one. Many in our industry say one thing but do another, which causes much mistrust. It happens so often that we almost accept it as the norm. Should someone really follow through on this attribute, they really stand out from the crowd. 3. Appreciation of the distribution functions we provide our manufactur- ers. This is demonstrated by not selling us out and protecting margins in the field. 4. A willingness to invest in our people and company. By this, I do not mean golf junkets and dinners but a desire to invest as well as work with our front-line people. 5. A willingness to form a true partnership to attack various markets together. This requires that, together, we form a plan with realistic expectations. Very few of our manufacturers do this presently but the few that do are getting great results. Dan Hawk, President Hawk DanHawk@HAWKINC.COM 1. A real willingness to work with us to be profitable. 2. Sincere qualified assistance with problems. 3. No hassle warranty coverage. 4. Accessibility to the right people. 5. Good knowledgeable sales representatives. continued on page 12 January/February 201 2 1 1