Distributor Screening Mechanism

We all know, distributor plays a vital role of the distribution channel, so we need to be extra attentive while appointing a distributor. The right selection of distributor is quite important for achieving the market leadership in the targeted location. The distributor appointment process should be extremely thorough and careful. The partner is appointed for the long term, in a segment, and for a product range.

Selection process:

It requires an experienced person to evaluate alternative parties which are judged based on following criteria

Criteria for Selecting Distributors:

Investment

A potential distributor should be financially good enough depending upon the market trend as well as your product range. Finance is the most important criteria because:
The distributor needs to stock the required products in bulk from the manufacturer which requires a huge amount.
A distributor will be needed to provide credit (no. of credit days based on the requirement) to the retailer and institutions.
The distributor needs to invest in the infrastructure, products, and more.

Infrastructure

The infrastructure required like manpower, vehicle, warehouse should be available of required quantity and quality.

Influence

If the distributor has good market reputation in terms of relation with retailers, it will help in efficiency of his work.

Distributor’s knowledge of the prevailing market conditions, competitors’ products, retailers’ attitudes, etc. will help distributor in getting good hold on market. Distributor should also have interest in knowing day-to-day happenings of the market.

Prior experience in distributorship will help the distributor takes less time in understanding the process.

Less time to build good link with retailers/institutions.

Involvement

Latest Technology

The distributor should have knowledge of new technologies like Computing, SMS’s, internet. It can help in various aspects of the distribution process & in getting better efficiency in communication and simplifies business operations.

Attitude

Distributor should have a positive attitude and should possess basic managerial skills. He should be willing to experiment with new products and techniques & take risks.

It is a process to ensure customer satisfaction with adequate support through any mode. An outstanding customer support with the help of trained customer service representative will be back bone for retaining customers.

When a problem arises, customers should receive timely attention to an issue and support representative should follow-up with the customer till the issue is fully resolved and the customer is satisfied. Periodic assessment of customer service is required for a healthier and growing database.