Developing the relationship between distributors and their vendors is key to a healthy supply chain and service, and something that is of the utmost importance at Westcoast Retail. Based on our work with some of the world’s most innovative technology brands such as Apple, HP and Samsung, we have come up with five top tips to ensure the relationship is maximised for all parties involved.
- Offer a unique and flexible service
To satisfy the unique demands of individual vendors, retailers and even individual products, it is essential that the supply chain model has been tailored to suit their needs as a one size fits all approach can become incredibly inefficient. This bespoke supply chain model must take into account the different lifecycles and seasonal fluctuations in demand of each product and must always remain flexible, for example repackaging or grouping products for different retailers.
- Be willing to work alongside both the vendors and retailers
Keeping up with the fast-paced nature of the technology market places additional pressure on already stretched store staff, often resulting in delayed pricing or display updates. Entry and exit photography and app-based, real-time reporting used by our merchandising team allows vendors to track stores that have or have not been updated to the latest planogram and pricing. The ability to see which stores are up to date and identify those that still need updating can prove invaluable to vendors and retailers, saving them time, whilst providing an open and honest report that will help improve the relationship between all parties involved.
- Deliver a service beyond box shifting
One of the cardinal sins of an inefficient supply chain is the visibility of products – or lack of it – if they are in fact, in stock. A distributor that can react quickly to orders and accurately forecast sales would help ensure that a product in stock in the distribution centre is also available in the store’s stock room. The responsibility for then ensuring the product is on the shop floor often lies with the store, however this is much more effective when picked up by an external, dedicated store-based merchandising team. For example when providing this service, our team improved on shelf availability of HP ink from 88% to 98% in Tesco stores, leading to a substantial sales increase of 27%; achieving significant results even in a mature market.
- Provide reports and insights for each retailer
To experience healthy sales, technology products must be well presented and accompanied with informative and attractive point of sale (POS) material. Guaranteeing a product is on shelf is only half the job as, without this additional information, that is exactly where it will stay. Customers will end up confused by the range of products and which model suits their needs, or they might not be aware of the additional features and accessories available with certain products. A dedicated merchandising team that works closely with both the retailer and manufacturer can ensure products are displayed in an attractive way, with the correct additional information, and showing with the latest pricing.
- Understand the experience of the online customer
It is essential that as much care is given to the online customer experience as in store. This includes refining the purchasing process to as close to the optimum three clicks as possible whilst also providing enough easy to access information about the product along the way. The online customer experience doesn’t finish at the checkout, however, and the distributor must work in sync with both manufacturer and retailer’s current and often unique system to deliver and accept any returns in the smoothest and fastest way possible.
