Requisite Factors Any distributor should first add value to its manufacturer partners by giving them right kind of support. Says Paras Shah, Neoteric, “The instrument to penetrate into market is channel partner. The distributor should give channel proper direction about business strategies.” Different distributors have expertise in different areas. They can hone this expertise wherein both manufacturer as well as channel partner can benefit from it. “I believe it is not about having few exclusive partners or a few hundreds. What is important is to have right strategy for that market,” says Shah. Thorough knowledge of a product is a key component in effective distribution. Therefore, product training remains a primary factor. But today challenge for distributor is different. Distributors should identify methods to conduct training without taking sales force out of field for an extended period of time. One method that has been working successfully is online training with many distributors setting up robust online training websites for partners. Profitability is another key factor. Says Aditya Bhuwania, “Unless a distributor is profitable, partner cannot be profitable.” But J. Kulkarni of Redington feels that channel partners do not need help from distributors to maintain profitability. According to him, distributor can help partner to access business opportunities, which it may not be able to do on its own due to geographical or financial restrictions. In terms of sheer profitability, there is very little distributor can do. However, ensuring that they run a profitable business is something distributor can do. For instance, large tender queries can be addressed more effectively through distributor participation. Since a small reseller may not be able to comply with these requirements distributor can step in to fulfill demand.

Finally The goal of a distribution company should be to make sure that right product is made available at right time in most efficient and cost effective manner. Distributors not only need to procure product from channel and sell it to next level but also ensure that it in turn successfully sells to next level by creating demand for it. A single weak link could affect whole chain.

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