FEDA News & Views

FEDAJanFeb2016

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16 FEDA News & Views The need to reimagine these partner- ships was equally evident with NAED members. Eighty-seven percent of NAED distributors and 94 percent of NAED manufacturers indicated the need to re- imagine partnerships. R e p r e s e n t a t i v e thoughts from FEDA members as to why this reimagination is needed includes: "We talk about col- laboration a lot, then manufacturers sell direct. Dealers play games with manu- facturers, switching specs. If we're going to be partners and collaborators, we need to quit stab- bing each other in the back." "The manufacturers complain about the distributor and vice versa. Obviously if we were all collaborating together, the complaints would be mini- mal. GOOD LUCK!!!" I n 2015, The National Association of Electrical Distributors' (NAED) Channel Advantage Partnership (CAP) Council commissioned a research project to understand the current state of relation- ships between distributors and manufac- turers and ultimately to define the new manufacturer-distributor partnership. The research extended beyond electrical distribu- tion to determine if differ- ent lines of trade viewed and implemented partner- ing in significantly differ- ent ways. The Foodservice Equipment Distributors Association (FEDA) partici- pated in the online portion of the survey with 52 mem- bers responding, represent- ing 15 percent of total sur- vey respondents. An Overwhelming Agreement FEDA members over- whelming agree that there is a need for manufacturers and distributors to reimagine how they can better work together and more collaboratively to develop more meaningful value propo- sitions for the markets, businesses, and individuals they serve. "The channel is a bit convoluted with manufacturers and distributors both having sales forces that are targeting the same accounts and in many situ- ations without much collaboration between the parties. This is an ongoing conversation within the industry and requires constant attention to ensure we are attempting to collaborate vs compete." Challenges to Partnering If such an overwhelming majority is desirous of deeper partnering, we want- ed to identify the primary challenges that prevented this desired outcome. After- all, if both manufacturers and distribu- tors are in search of working together in a more meaningful way, what is prevent- ing them from doing so? To get to the root of the issues, our survey asked, "What are the top three challenges that prevent deep partnering and collaboration between manufactur- ers and distributors?" As you can imag- ine, there was no shortage of responses or opinions. Feedback ranged from self- reflection to the damning and matter of fact to the emotional. The two tables on page 22 provide representative respons- es from both of these continuum. I n 2015, The National Association of "The channel is a bit convoluted with continued on page 22 THE NEED TO REIMAGINE By Dirk Beveridge The Author of the Book Innovate! 90% of FEDA respondents believe there is a need for manufacturers and distributors to reimagine how they can better work together and more collaboratively.

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