THE 7- ELEMENTS OF VALUE-ADDED DISTRIBUTORS?

Competition is intensifying in the distribution space, as new technologies emerge and accelerate, in the era of the forth industrial revolution (4IR) that is witnessing an unprecedented growth on cloud computing, cyber security, wearables, artificial intelligence (AI) and robotics, to name a few!

As a result, distributors are forced to abandon their comfort zone (blue ocean), moving into a danger zone (red ocean), where margins are diminishing and differentiation is too hard to define.

Our own business model, THE 7- ELEMENTS OF VALUE-ADDED DISTRIBUTORS? has been designed to define inherent values and create a critical path towards more sustainable and profitable business, through Three (3) STAGES & Seven (7) ELEMENTS.

STAGE - I : TO BE

The first three elements are fundamental ones, to start any successful distribution business. An absence of any of these would predict an early failure to the business.

1. Financial Abilities: the cornerstone of establishing and scaling a distribution business.
2. Logistics Capabilities: to ensure service quality and service terms (SLA) exceed customers' expectations.
3. Effective Execution: a measure of operating efficiencies and risk mitigation.

STAGE -II : TO LEAD

The following three elements ensure the distributor's lead in the marketplace with high-impact leadership and excellence.

4. Product Superiority: a smart selection of products and services that are appealing and valuable to channel partners and their respective customers.

5. Channel Excellence: ability to recruit, train and motivate channel partners, ensure they possess defined qualities that complement the offerings and GTM strategy of the distributor.

6. Critical Mass: a crucial element to a distributor's competitiveness, where prices and trade terms are superior to that offered by other competitors, across different customers, segments, and markets.

STAGE - III : TO ELEVATE

The Seventh element is possibly the most critically defined element, as it varies from one industry to another and is highly reliant on the type of products and solutions offered by the distributor. There is no one-size-fits-all in this category and the service offerings need to be well defined and validated.

7. Value-added Services: these are the type of services that demonstrate the distributor's capability in delivering value, understanding customers' need and translate plans into actions and wins.

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Above business model has been designed and crafted taking into consideration the changing dynamics of the distribution industry, especially in the past 15 years, and capitalizing on extensive industry knowledge; where we acted as executives, consultants and advisors to distinguished market leaders.

At Conceptlogic Ltd., we help new and evolving distributors achieve their vision and success, by embracing a winning business model that is invented to create sustainable value, utilizing state-of-the-art strategy platforms to deliver on commitments, and deploying financial and operating tools that can ensure success.

For further details on the business model, and on how we can help you meet and exceed your strategic objectives and business goals, please contact us at:

[email protected]

? Copyright?Amer Khreino at Conceptlogic Ltd.

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