Question

Topic: Other

Distributor Selection

Posted by Anonymous on 125 Points
Hello all,
Our company is trying to start a distribution relationship in order to expand into international markets. Can anybody provide me with some tips on how to select the best diributor for our products? what kind of questions we need to aske a potential distributor to comsider him as the right distributor for us.
Thank you,
Ilan Abadie
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RESPONSES

  • Posted on Accepted
    hi

    can you tell me what is the line of activity of your products. the reason why i am asking is if it is a kind of perishable product then the requirements of the distribtuor would vary. (something like a cold storage plant might require)

    but in a generic sense, i think the follwoing factors needed to be taken into account.
    1. credibility of the distributor.
    2. the line of business the distribuotr is in.( is there a coherence in his expertise and your requirement of him)
    3. his relationship with the retailers with whom he might have done business earlier.
    4. scale of business that the distributor might have handled earlier.
    5.the competency of the sales force under him.
    6.his inventory management policies.what are his previous service level stats.
    7.the location of the distributor as compared to the location of your market.
    8.market and technology savvy or not. if he is update as to the current scenario of the business you are in, and if the sales force is equipped with the tols to manage the sales effectively. (this point would depend on the type of business you are in, if it is a small voulme concetrated in a small area, then this could be given away with)
    9. the assets that the distributor has at his disposal to mainatin your stock and delivery mechanisms involved.
    10. the say of the distributor in your business dealings with him. this is actually important, coz it would mean the diiference between a healthy cash flow and unnecessary pileup of inventory.
    11. his understanding of the local market conditions etc.

    hope this helps
    let me know
    sam
  • Posted on Member
    Once you target the countries where you want distributors, consider speaking with an international commercial specialist at the US Commercial Service. We use their "Gold Key Service" to locate overseas suppliers and partners. Each US Embassy has a Commerical Office. They can provide you with very useful market data, leads, and even advise on whether or not a potential partner is credible and in good standing in the business community.

    https://www.export.gov/

    Good luck,
    Drew
  • Posted on Member
    Hi,

    You may want to check out the Distributor Evaluation/Selection Checklist at
    www.business-tools-templates.com/sales_distributor_channel_Partner_selectio...

    Hope this helps
    regards
    Pat

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