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What Your Distributor Wants
Monday, 10 July 2006
That's an easy one right? Of course, they want sales and profits. But the definition of what's profitable in a supplier and customer relationship goes far beyond product costs and gross profit.

One of the biggest complaints that foodservice representatives have is dealing with chefs, purchasing agents, and operators that do not have an organized ordering process. It's acceptable if you're not prepared when your foodservice representative (DSR) arrives or calls for your order, he/she will take this into consideration whenever possible as they control your pricing. Here are some tips to make sure you are the type of customer that deserves to receive the most competitive prices as well as provide your DSR the opportunity to go beyond the order process with ideas to improve your business.

1. Have a consistent time, early in the morning (assuming your distributor has an afternoon order cutoff) that you make time to meet with or call your DSR.

2. Have your order ready and work with your DSR to utilize an inventory, purchase order, or other guide that allows you to communicate the items and product codes that make the order entry process a snap.

3. For the non-contractual operator, ask your DSR to let you know when ever there is a significant price variance on items you are purchasing, but don't line item cherry pick or barter each item.

4. Ask your DSR to review the order against your normal purchase activity to confirm you have not missed an item.

5. Maintain enough inventory to give plenty of recovery time to your distributor if they are out of an item on the initial delivery.

6. At the completion of your order give your DSR a case count to confirm your total order case quantities match what was entered by your DSR.

7. Allow your DSR to present briefly new ideas, products, and promotions at the conclusion of your order.

8. Always request an immediate call as soon as your representative learns of a potential short prior to delivery.

9. Ask what you can do to help your DSR be successful and what he/she can do to improve your operation profitability or what manufacturer vendors could be referred to demonstrate new items or secure special rebates or deviated pricing for your account.

10. Request a quarterly business review with reports related to your purchasing that you can use to better manage your business.



You might be thinking, "hey, why would I want to make life so easy for the distributor -- I'm the customer." Well, you're right. But no distributor continues to sell an account where they are not making money. They know exactly what their profit vs. time spent on every order is and they have no problem adjusting to a level of service and pricing to meet your habits.

By creating a great partnership with your foodservice representative you'll have a true partner working for you every day!

 
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