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The power of effective
distribution.
The
Souvenir Wholesale Distributors Association (SWDA) would
like to introduce you to the Power of D—the value that
distributors bring to the supply chain in the souvenir
and tourist products industry.
Though the industry is changing with the advance of
technology and graphic design capabilities and the
increase of off-shore manufacturing, the distributors’
role is more important than in the past. The volume of
products and dollars flowing through the channel is
greater than ever. Through all this change, SWDA remains
committed to strengthening the role of the distributor
in the souvenir and tourist products industry.
Sales and the Power of D
Thee true strength of the Power of D is in customer
relationships. Without exception, retailer relationships
are the biggest asset a distributor brings to the supply
chain. Getting your products to one distributor exposes
them to hundreds or even thousands of retail stores that
might not otherwise see them.
Distributors have frequent contact with their customers.
They build relationships that would be both difficult
and very expensive for manufacturers to duplicate. They
provide a level of service and local knowledge that is
more focused than the manufacturer can provide. Because
of their closer relationships, they have a better
understanding of the locale’s and retail stores’ needs.
Inventory and the Power of
D
In addition to sales relationships, distributors add
value by managing inventory. For manufacturers, that
value manifests itself in terms of fewer shipments in
larger quantities.
Containing costs through consolidation is at the core of
the distributor’s existence. It’s much more cost
efficient for a manufacturer to send a distributor five
pallets of freight than to send a box or two to 500
different retailers.
Cash Flow and the Power of
D
Credit and collections factor into this equation as
well. Because distributors shoulder this responsibility,
manufacturers do not need the personnel, systems and
equipment necessary to invoice and collect from
thousands of retail businesses. Fewer, more reliable
accounts means reduced risk associated with financing
receivables, while collecting on them sooner. Sharing
the costs of inventory and distribution provides
opportunities to control overhead and capital
investment.
Retailers and the Power of
D
A discussion of the Power of D is not complete without
mentioning what it means to retailers. Distributors must
justify their existence on both sides of the supply
chain. Their services to retailers provide manufacturer
with healthy retail organizations able to effectively
more products to the consumer.
You Can’t Avoid the Cost
You can avoid the distributor, but you can’t avoid the
cost of distribution. From the manufacturer’s
standpoint, you can prepare to deal with small,
fragmented shipments, invoicing, customer service and
collection problems, warehousing and transactional
costs. But can you be in thousands of retail locations,
keep them stocked with product specific for their
locale, and get them product when they need it? Can you
serve as consultant and confidante on a broad spectrum
of industry issues? Can you duplicate the bond and trust
that distributors and retailers share from years of
mutually beneficial relationships?
In the end, distributors can do all of these things more
efficiently and more economically. That’s the power of
D. Put it to work for you.
For more information about how you can put the Power of
D to work for your organization, contact SWDA at
swda@ksgroup.org.
Retailers, to search for a souvenir wholesale
distributor in your region, visit the
member directory.
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