6 Key Ways Suppliers Can Win Over The Competition


The world of supply chain is changing very quickly as the process of supply and distribution is catching up to the ecommerce space. As dropshipping has opened up this age-old process straight to end-buyers and consumers, buyers now have the ability to purchase straight from the factory and manufacturers to supply their brick and mortars, e-stores or promotional product needs. What does this mean for distributors who rely on suppliers when their clients are going straight to the factories themselves??

Alibaba.com has changed the game tremendously with the ability for buyers to get rid of the distributor process and order wholesale products in bulk straight from China. Alibaba is the most popular destination for online shopping, in the world's fastest growing e-commerce market. Alibaba.com connects Chinese exporters with companies elsewhere in the world. 

As this is growing, how can US suppliers compete to keep distributors loyal to them and how can suppliers evolve, change and improve their processes to maintain and increase profitablity and customer loyalty? 

6 Key Ways Suppliers Can Win Over The Competition

1. BARGAINING POWER - The bargaining power of the supplier in an industry affects the competitive environment and profit potential of the buyers. This is such an important reason why suppliers have to constantly work with their distributors to offer services that allow for the highest quality that meets budgetary needs. Suppliers remain to have key bargaining power for the highest profitability. 

2. ALIGN WITH BUYERS' NEEDS - Suppliers who prioritize their capabilities to align with their buyers’ needs may find a competitive edge over competitors who focus on factors that are less important to their buyers. Suppliers who listen to their buyers and align their priorities will enjoy longer-term relationships

3. FOCUS ON YOUR CUSTOMERS -  Ask them questions, listen to their feedback, and figure out how to solve their problems. Understand their needs and give them solutions. Understand who they are selling to and give them access to information that will support their sales and boost their profitability. 

4. TRAIN YOUR SALES TEAM - Your sales and account managers are key to maintaining and creating customer loyalty, increase sales, promote campaings and boost brand identity. These days account managers are expected to be more than just "order takers" but be marketing gurus, product experts and business parnters. 

5. KEY MANAGEMENT-  Knowing your competition means you have the ability to stay 20 steps ahead. Having key management in place to support your business, develop growth strategies, train your team members, purchase the right products and everything in between is a key driver to success. Hire the right management, teach them your vision and mission then give them freedom to create innovative ways to improve your supply process and corporate structure. 

6. EASE OF USE - Your buyers are consumers in their everyday lives and consumer ecommerce sites are beautiful, easy to use, fun to browse and has loads of content marketing. Anyone and everyone understands how ecommerce sites work and navigate. A supplier's website, even though a B2B structure, needs to mimic and have fundamental capabitlities.

Resources:
http://projects.wsj.com/alibaba/ 
https://www.forbes.com/sites/chriswright/2014/09/16/so-what-exactly-is-alibaba/ 
https://corporatefinanceinstitute.com/resources/knowledge/strategy/bargaining-power-of-suppliers/ 
https://solvers.ups.com/key-ways-industrial-suppliers-can-win-over-mro-buyers/ 

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02:27, Jun 26, 2018

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