What is distributor management?
Distributor management is the process of overseeing and coordinating the relationship between your company and its distributors, those businesses that buy products from you and sell them to their customers or further down the supply chain.
Think of it this way: if you’re a SaaS company selling cloud-based software, your distributors are the partners that buy your software licenses in bulk and then resell them to end-users. Managing these distributors effectively can lead to higher sales, broader market reach, and stronger partnerships.
Distributor management practices typically fall into a few categories, all of which can be managed in an end-to-end partner relationship management platform:
- Recruiting and onboarding new distributors to reach new markets or keep up with consumer demand
- Setting expectations and goals for distributors with clearly-defined performance metrics and targets
- Implementing incentive programs that motivate distributors to achieve sales targets
- Providing training and support to help distributors more effectively sell your product
- Managing conflict or competition between different distributors to ensure fair competition
- Coordinating marketing and promotional efforts with distributors to collaborate on different campaigns and promotional activities
- Forecasting demand and inventory planning to coordinate your different supply chains
- Maintaining open and ongoing dialogue with distributors for updates, to answer questions, and to discuss areas for improvement
Successful distributor management focuses on empowering your distributors, so you can build strong and mutually beneficial partnerships that drive sales and growth.