MANUFACTURERS TO BLAME FOR THEIR DISTRIBUTORS' SHORTCOMINGS
Manufacturers unhappy with the performance of their distributors only have themselves to blame. That's the conclusion to be drawn from a major study of U.S. manufacturers who sell through independent distributors. The study was conducted by the Industrial Performance Group, a firm that specializes in helping manufacturers and distributors improve their working relationships. More than one-third of the manufacturers participating in the study give poor or failing marks to their distributors in such critically important areas as their commitment to the manufacturer, their ability to penetrate local markets, their sales capabilities, and their inventory management practices. Only one percent characterize their distributors' performance as excellent in these areas. "That manufacturers are less than enthusiastic about the performance of their distributors is certainly no revolutionary finding," said Edward S. Stecki, the Industrial-performance Group's President. "But what is especially noteworthy from the data is that distributors themselves cannot be held solely responsible for many of their perceived deficiencies." Instead, manufacturers must shoulder the lion's share of the blame for distributor shortcomings, according to Stecki. The reasons are that manufacturers often: Neglect to tell their distributors what's expected of them; fail to adequately prepare them for the assigned tasks; and take much too loose of an approach to managing their distributor relationships. Nearly one-third (30%) of the 250 manufacturers participating in the Industrial Performance Group study give themselves poor or failing marks in defining their distributors' roles and responsibil-ities in the marketing, sale, and service of their products.

For more information, contact Industrial Performance Group, Inc., 540 Frontage Rd., Suite 2100, Northfield, IL-60093, 800-867-2778 or Outside U.S. 847-501-3343.