Working at Cross-Purposes: How Distributors and Manufacturers Can Manage Conflict Successfully
Mike Marks, Tim Horan, and Mike Emerson
Indian River Consulting Group
It takes a long time to develop good distributor-supplier relationships; unfortunately, it only takes a short time to destroy them.
Working at Cross-Purposes takes a look at what really drives distributor-supplier relationships, how often they go bad, and why. It can help senior distribution executives and their suppliers avoid the economic and other consequences of a core relationship turning sour by looking for a means of correcting emerging problems before they become critical. The authors explore the fallacy of “win-win” and provide readers with diagnostic tools to help distributors and their suppliers manage relationships in a way that proves beneficial to both parties.
In Working at Cross-Purposes, authors Mike Marks, Tim Horan, and Mike Emerson of Indian River Consulting Group help distributors and suppliers improve their relationships with each other. The authors learned through their research findings— drawn from responses from distributors to a comprehensive written DREF survey as well as candid interviews with distributors—that thinking a relationship was “win-win” could be dangerous. The more time both partners spend managing the relationship, the more beneficial the economics. Spend less time, get fewer rewards. It’s as simple as that!
This book is written with both distributors and suppliers in mind and both partners can benefit. Anyone, at any level, within an organization who is interested in preserving relationships with partners will benefit from exploring the ideas presented in Working at Cross-Purposes. Sales managers, product marketing managers, or local supplier reps can have a significant impact on the relationship, because it is here that the players do not always understand the big-picture impact of their decisions.
The economic relationship between the distributor and supplier as trading partners is certainly complex. Much of the past research on this topic has been prescriptive rather than diagnostic focusing on making the relationship work despite the problems instead of trying to find out what went wrong in the first place and why. In Working at Cross-Purposes, the authors present a valuable real-world framework for diagnostic insights and action planning geared to move a relationship from dysfunctional to effective and to help both sides achieve their shared and individual goals.
Clearly, both partners have common ground. While there are no silver bullets or magic solutions for commercially effective relationships between distributors and suppliers, the authors pinpoint the three criteria that are critical to successful relationships between these partners:
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The mutual trust of the partners
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The need for honest and candid communications
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The mutual need for continued growth.
Let Working at Cross-Purposes help you understand what is behind the constant friction that exists when both partners work at legitimate cross-purposes because their paths to profit and growth are very different. You’ll learn about avoiding the missed opportunities that exist in every distributor-supplier channel and you’ll find real diagnostic tools to apply and corrective actions to take to preserve these vital relationships for your business.
Download a copy of the Preface and Introduction
"Meet the Authors"
Mike Marks is the managing partner at Indian River Consulting Group (IRCG). He founded IRCG in 1987 and is well known throughout the wholesale distribution industry as both a consultant and speaker. Mike is currently serving his second 4-year term as a fellow of NAW’s Distribution Research and Education Foundation.
Tim Horan joined IRCG as a partner in 2005 after leaving a distribution career spanning more than 25 years. Horan spent the last 15 years as president and CEO of an alcohol distribution company. He works with CEOs and other members of senior management in the areas of organization development and design. His recent role at IRCG was to serve as a primary researcher and coauthor for this book.
Mike Emerson, a partner at IRCG, has been with the firm managing channel and other projects since 1998. Emerson conducted research and served as a coauthor for this book endeavor.
"Testimonials"
“Working at Cross-Purposes provides the reader with keen insights into the distributor-supplier relationship. The authors challenge sacred cows and cherished beliefs and provide a new and improved template for distributors and suppliers to negotiate satisfactory working relationships.”
-- Michael Finn, President, Central Power Systems
“The role of distribution is a vigorous one. As a result, the relationships between distributors and suppliers are constantly changing. Working at Cross-Purposes takes a real-world view of the changing nature of these relationships and provides an excellent guide for proactively managing them.”
-- Robert Glorvick, President, Republic Beverage, Nebraska
“This book captures the changing and dynamic relationship between the distributor and the supplier. To say that it is important to manage that relationship is a huge understatement. Finally, there is a roadmap for managing the relationship that honestly looks at the differing roles of distributors and suppliers.”
-- Robert Dill, President, Hisco, Inc.
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