Master distributors – also known as wholesalers or resellers, depending on the sector – have always been viewed as a source for filling the "oddball orders." But as distributors renew their focus on core products and capabilities, they've also become more reliant on masters to help them meet the growing demands of their customers.
Distributors of all sizes are rationalizing their inventory investments, but because they don't want to alienate customers that are also streamlining their supply chains by saying they can't provide something, they're turning to masters to provide that extended product line.
Master distributors are also investing in additional inventory management and marketing tools to aid their distributor customers.
“I used to view the masters like competitors because they were supplying my competition and giving them access to product lines that I might be buying direct and creating more competition,” says Ted Stark, president Dalco Enterprises Inc., New Brighton, MN, in The Evolving Role of Master Distributors. “Now there’s much more reason to look at the entire supply chain, and they really can be helpful in managing supply chain costs and managing inventory better.”
Read more about how master distributors are helping distributors be more efficient and profitable in The Evolving Role of Master Distributors.
