Establishing New Distribution
The controlled change from one supplier to another
Overview of Process
The process is dependant upon the nature of the operation, whether
branded or with core values combined with the nature of the distribution
- The product list is reviewed to avoid product duplication and
is cross-referenced with existing manufacturer agreements
- The consumption volumes are calculated by line so that this
information can be communicated to the distributor
- Bespoke lines and standard lines are introduced or transferred
to the incoming distributor as applicable
- Operational personnel are briefed regarding the new supplier.
In particular, service levels are explained and new order sheets
- Finally support is given in the consolidation of the contract.
The swift resolution of queries / problems is the key to maintaining
credibility in the eyes of the operator and will also ensure contract
Benefits / Results
The opportunity to move contracts is something that might happen
every 2 or 3 years. There needs to be some very substantial commercial
benefits to make the move worthwhile, particularly when one considers
the amount of disruption can be caused if not handled correctly.
It is essential that the transition is carried out in a controlled
manner. Apart from operational disruption, an additional side effect
can be that units feel forced to purchase outside of the nominated
system, which as a result can endanger any negotiated volume rebates.
Once outside the system, it can take a lot of work to bring rebels
back into the fold, so it is essential from a commercial point of
view to avoid this happening.
Who would benefit
Companies that operate within the contract distribution market
as well as larger companies that have formal agreements with wholesalers.
This is really a service extended to chains.