The premise of the Industry is founded on a Supplier and
Distributor relationship. The integrity
of the Supplier and Distributor relationship is the strength of the
industry. The primary tenant that no one
will disagree is that the Supplier does not sell product directly to end buyer
organizations, as this is the job of the sales organization or Distributor
Company. Suppliers that sell to end
buyer organizations are looked upon as less favorable than those who do not
sell direct. From the Supplier’s perspective
their does seem to be a double standard because Distributors have many direct
factory relationships to overcome price pressure from customers.
With a hobbling global economy Distributors are
economically pressured to skip the U.S. import supplier and deal directly with
factory in China. Consequently, direct
import trading companies have started to register with the industry
organization making it easier for Distributors to connect directly with factory
representatives that work on commission and can eliminate all need for a U.S.
supplier. Some of the larger distributor
companies have but their own purchasing policies in place that make all orders
over a certain dollar value go out for bid to other suppliers. Many of these suppliers are non-industry
suppliers, trading companies, or directly with the premier factories.
In my experience it provides no value for the Supplier to
complain about the Distributor's sourcing practice, as well as it does no good
for the Distributor to complain about the Supplier's direct sales
practice. While Artistic Toy does not
sell directly to end user buyers, the focus must be on how we can help each
other regardless of who you sell to or buy from. No one distributor or supplier owns any
customer relationship. Every buyer has a
different set of needs and requirements for ordering and you have to carefully
understand how each of us fits into that relationship. The real problem for most businesses is who
my target market and what am I better at than anyone in the world? Once we answer those questions with clarity
and integrity our value is sustained regardless of supply chain problems.
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