Manufacturers who market their products through dealers/distributors began with the marketing premise of the more the merrier. For example, Commercial Tires as well as Agricultural Machinery put dealers on every corner possible. This lead to Manufacturers dealing with thousands of distribution points with independent ownership. Managing these dealers was challenging at best. Driving sales through these distribution points became the focus of the Manufacturer.
Today, Manufacturers are recognizing that larger, fiscally healthy dealers/distributors are the key to driving sales. The first step to be taken is to determine—
- How many dealers/distributors are really needed to serve the market?
- How big should a dealer/distributor be based on the size of the market in their area,
- how many sales people are needed,
- how many service techs are needed,
- what should the parts inventory be,
- and, other such questions.?
- What are the key performance indicators that drive the fiscal health of a dealer/distributor?
Currie Management Consultants can provide the answers to the above questions. We have completed major distribution projects for manufacturers in many industries