Redefining Partnership in the Digital Age
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1 Redefining Partnership in the Digital Age Featuring: Mark Dancer, author, Becoming a Digital Distributor Colin Puckett, Amazon Business Jenel Stelton-Holtmeier, Modern Distribution Management Sponsored by: December 10, 2015
2 Agenda Intro Results from the 2015 Online Partnership Survey Becoming a Digital Distributor New Players: Friends or Foes? Q&A
3 Speakers Mark Dancer NAW Author, Becoming a Digital Distributor Henkel Colin Puckett Senior Marketing Manager, B2B Amazon Business Jenel Stelton-Holtmeier Editor MDM
4 MDM Survey on Online Partnerships & Marketplaces
5 MDM Survey on Online Partnerships & Marketplaces Distributors How would you describe your e-commerce maturity? Fully integrated platform 13% No platform/minimal online exposure 21% Advanced transactional site 39% Simple transactional site 27%
6 MDM Survey on Online Partnerships & Marketplaces Distributors What challenges/barriers are preventing you from upgrading? Getting consistent data from suppliers Uploading accurate product data Lack of employee time to maintain Lack of in-house technical knowledge Too expensive Can t integrate with existing technology No challenges, just don t see a need Security concerns Concerns about violating regional contracts
7 MDM Survey on Online Partnerships & Marketplaces Distributors How do you drive traffic to your e-commerce platform? Links from main website Search engine optimization No comprehensive strategy around this Purchase online ads (e.g., Google AdWords) Marketplace stores
8 MDM Survey on Online Partnerships & Marketplaces Distributors How do you drive traffic to your e-commerce platform? Links from main website Search engine optimization No comprehensive strategy around this Purchase online ads (e.g., Google AdWords) Marketplace stores
9 MDM Survey on Online Partnerships & Marketplaces Distributors Would you consider partnering with a third party to sell products? No 49% Yes 51%
10 MDM Survey on Online Partnerships & Marketplaces Distributors Would you consider partnering with a third party to sell products? NO: We have our own solution already. I am not sure what they are trying to be in the industrial market. Do not see sufficient value add. We view Amazon as a competitor.
11 MDM Survey on Online Partnerships & Marketplaces Distributors Would you consider partnering with a third party to sell products? NO: We have our own solution already. I am not sure what they are trying to be in the industrial market. Do not see sufficient value add. We view Amazon as a competitor. As value added consultative quality Distributor, these channels are squarely in the Threats box of my SWOT chart.
12 MDM Survey on Online Partnerships & Marketplaces Distributors Would you consider partnering with a third party to sell products? YES: An established platform with an already existent pattern of activity is attractive. All channels will be considered. We already do it on a limited basis. Want to see if they bring a different base of customers.
13 MDM Survey on Online Partnerships & Marketplaces Manufacturers Do you sell your products direct online from your website? No 68% Yes 32%
14 MDM Survey on Online Partnerships & Marketplaces Manufacturers Do you sell your products through third-party marketplaces (not including distributor websites)? No 47% Yes 53%
15 MDM Survey on Online Partnerships & Marketplaces Manufacturers What concerns do you have about using third-party sites to sell directly? Creating channel conflict Lack of resources to update/maintain information Don t want to fulfill individual orders Security concerns
16 MDM Survey on Online Partnerships & Marketplaces Manufacturers What concerns do you have about your distribution network s use of third-party sites to sell directly to their end customers? Inconsistent customer experience Margin erosion Lack of control over pricing Territorial conflict
17 MDM Survey on Online Partnerships & Marketplaces Manufacturers What types of restrictions do you place on your e-commerce or the e-commerce of your distributors for your products?
18 MDM Survey on Online Partnerships & Marketplaces Manufacturers What types of restrictions do you place on your e-commerce or the e-commerce of your distributors for your products? None 57%
19 MDM Survey on Online Partnerships & Marketplaces Manufacturers Once you go e-commerce and take title to the product it's impossible to have any restrictions. The only choice you have is not to do it and that's not a viable option if you want to grow your business.
20 Becoming a Digital Distributor Select Insights Mark Dancer NAW Author December 10, 2015
21 Today s perspectives represent current and ongoing research of distributor executives Adoption and use Creating value for your business Multichannel strategies Winning with customers Leading with suppliers Competing with disruptors Leading through innovation 21 December 10, 2015 Becoming a Digital Distributor: Strategies and Tools That Create Valuee
22 If we are smart, digital tools will dramatically improve our productivity and solutions. Customers and suppliers are also using digital tools. In the end, digital tools will transform the value chain. President, Wholesaler-Distributor 22 December 10, 2015 Becoming a Digital Distributor: Strategies and Tools That Create Value
23 Distributors are rapidly gaining experience and seeking strategies for strengthening their business 23 December 10, 2015 Becoming a Digital Distributor: Strategies and Tools That Create Value
24 Technology is not strategy, but can enable gains when aligned with a distributor s core value We are focused on what the customer expects and try to meet the expectations quicker than our competition, enabled by digital tools. We don t look at ROI on some technology decisions. Core Value Matrix President, Heating, Air-conditioning and Refrigeration Wholesaler-Distributor 24 December 10, 2015 Becoming a Digital Distributor: Strategies and Tools That Create Value
25 Digital tools yield new data, creating the potential for new value chain partnering Digital tools will drive increased sales, increased sales productivity, closer distributor relationships, and costs out of distribution channels. Data-Enabled Collaboration President and CEO Manufacturer Getting the Most Out of CRM 25 December 10, 2015 Becoming a Digital Distributor: Strategies and Tools That Create Value
26 Multichannel advantages are achieved through connected processes and common shared data Back Office People Front End ERP Website Marketing Automation CRM Video Library Digital Tool Digital Tool Digital Tool Digital Tool Information Transparency Customer Service Representative Field Sales Representative Marketing e-newsletter Digital Tool Digital Tool Digital Tool 26 December 10, 2015 Becoming a Digital Distributor: Strategies and Tools That Create Value
27 Digital visions require executive knowledge and strategies across Three Pillars of Change 27 December 10, 2015 Becoming a Digital Distributor: Strategies and Tools That Create Value
28 Digital visions require executive knowledge and strategies across Three Pillars of Change Note 1: Preliminary results from NAW s Ongoing Project: Getting Results from Your Digital Investments 28 December 10, 2015 Becoming a Digital Distributor: Strategies and Tools That Create Value
29 Distributor perspectives on new, disruptive channels include both friend and foe considerations As a partner + Extend reach + Leverage digital expertise + Convenience buys Costs and margins Digital relationship, not personal Creating and managing indirect channels is a new competency for many wholesaler-distributor executives As a competitor Aggregate / leverage data Price visibility Margin maintenance Global coverage Redefine customer expectations Distributors have faced new channels before, and most succeed by owning their core value offered to core customers 29 December 10, 2015 Becoming a Digital Distributor: Strategies and Tools That Create Value
30 Mark Dancer Available at: Or for Kindle: Digital-Distributor-Strategies-Createebook/dp/B00W5TH4DK Colin Puckett
31 Thank you! Redefining Partnership in the Digital Age Sponsored by: December 10, 2015
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