10/7/2015 3:03:00 AM
HEADLINES
Pac-West panel (left) with panel moderator Rick Peterson of All-West Components & Fasteners
The secret to good relations between domestic manufacturers and fastener distributors? It’s a matter of trust.
That was the key message from a panel session at the Pacific-West Fastener Association’s autumn meeting in Albuquerque, NM.
The panelists – Mike Bailey of Nucor Fastener, Russ Doran of Würth Timberline Fasteners, Chris McCaffrey of R&D Fasteners and Lou Boyd of The Olander Company – told Pac-West members that integrity is critical to longterm supply chain relationships.
“Trust is the most important thing we have in the supplier-distributor relationship,” Boyd stated.
Knowing your products and markets can improve supply chain relationships as well.
“We really want to deal with fastener experts,” McCaffrey stated.
The panel was moderated by Rick Peterson of All-West Components & Fasteners.
What are manufacturers looking for in distributors?
“We want people to be knowledgeable about the product,” Bailey explained.
McCaffrey noted that manufacturers are looking for partners, not just customers.
“We are looking for knowledge and integrity” in our distributors, he added.
What are distributors looking for in domestic manufacturers?
Boyd said The Olander Company prefers suppliers to teach them about their products.
“Knowing what their issues are helps us with our customers.”
Doran said Würth Timberline Fasteners appreciates candor about potential channel conflicts.
“If you don’t know if you’re friend or foe, how transparent can the relationship be?”
Other attributes of good manufacturers include reliability, on-time delivery and consistent quote turnaround, Doran added.
What do distributors do to cause manufacturers pain?
Bailey said the distributor headaches Nucor Fastener involve requested lead times and minimal trust.
McCaffrey added another issue: a lack of “flowdown” (information on quotes).
Where should product technical expertise responsibility lie?
Boyd said the customer, distributor and manufacturer should all be knowledgeable.
“We ask a lot of questions – our customers expect this of us.”
What are the criteria for manufacturers to sell direct?
McCaffrey said R&D Fasteners receives frequent calls from OEMs, but R&D tries to find out who the OEMs typically buy from and then try refer them to customer distributors.
“If at all possible, we want the business to go through the proper distribution channels.”
Doran said he’s okay with direct selling.
“When there is not good communication, that’s where there is potential for a train wreck.”
Doran added that manufacturers have a responsibility to challenge the ethics of their sales calls.
Boyd explained that customers like the idea of cutting distributors out of the supply chain but don’t understand the ramifications of that decision.
“A lot of customers don’t understand that most manufacturers don’t build it and put it on a shelf to await orders.”
Quotes are not free; do you charge for them?
Boyd said customers often tie up resources with quote requests, especially competitors.
McCaffrey noted that R&D Fasteners quotes between 3,800 and 4,200 requests per month. The company also tracks conversion rates, which vary from 9% to 15%.
“If companies consistently request quotes but don’t place orders, they go to the bottom of the pile,” McCaffrey stated.
“That’s called ‘prioritizing,'” Bailey added.
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