In a previous discussion we focused on the questions a supplier needs to ask a distributor to determine if there is potential for a mutual beneficial business partnership. Conversely, a distributor should have a short list of questions to ask a supplier to determine if they can work together and have a profitable relationship. Asking these questions up front will save a distributor from the headache of working with a supplier that just doesn’t understand how the distribution end of the supply chain works.
The following list is not specific to a particular industry but rather are universal questions that can be applied to almost any supplier-distributor relationship. Diane Hessan, the CEO of Communisapce Corporation which helps companies increase their brand awareness through consumer research, put together the following list;
Question 1: I know you’ve worked with similar companies, but what do you think is unique about ours?
If you’re a consumer packaged-goods company, it benefits you to work with a vendor that understands your industry, but that’s hardly sufficient. In fact, a vendor with extensive experience in the beverage business might make erroneous assumptions about how your company approaches the beverage business. A client once told me, “Our biggest problem is that vendors think that all investment banks are alike. We’re different from the others.”
The supplier’s answer to this question will help you understand whether it has done the homework about your organization, its nuances and culture, and whether it’s willing to flex where necessary. This question can show how customer-focused the supplier is. If it’s totally focused on its products and solutions rather than your business issues, this question will stump the supplier–a red flag.
Question 2:
Have you done something like this before?
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