The 2020 Mid-Year Economic Update_long

Tip: Be Transparent with Customers to Create Mutual Benefits

Relationships built on trust benefit distributors, customers and manufacturers.

Distributors that build customer relationships with trust and transparency can benefit from repeat business while customers benefit from the best price, says Karan Girotra, co-author of The Risk-Driven Business Model, in Differentiate to Combat Disintermediation.

Distributors can offer discounted rates to customers who agree to communicate their purchasing plans because they can anticipate those orders and be prepared for them.

Addressing when the customer is making a buying decision can affect the transaction on every level, Girotra says. By having that transparent relationship, distributors can negotiate with customers to give them a better deal if they agree to purchase at a more convenient time.

Including manufacturers in these transparent relationships is also important. A clear line of communication among all three players ­– distributors, customers and manufacturers – creates a lasting, significant return on investment for all, according to Bob House, CEO of BeyondTheory Logistics.

By creating benefits through these relationships, the distributor also helps to differentiate from competition and prove their value in the supply chain.

Read more about the benefits of transparent relationships in Differentiate to Combat Disintermediation.

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