Let’s consider you have signed exclusivity distribution agreement with well known brand, awesome let’s make a lot of money! But the crucial part has just started as you must know the ABC of how to manage the business relationship with the medical manufacturers in the long run?
There are 5 essential rules to build a healthy business relationship with medical manufacturers:
Talk to your manufacturer regularly. Address any issues of concern in relationships with your manufacturer as they arise. Build good relations with your current manufacturer’s representatives. Personalize the relationship. Visit manufacturer’s offices While you’re at it, include them in some of your strategy meetings. Invite them to break bread and invite them to your office parties and picnics.
Provide adequate lead times. Try to give manufacturers as much lead time as possible on your orders, Unless there’s a compelling. Share with them an honest projection of your needs and keep them abreast of any significant changes in that estimation. Refer damaged or faulty goods to the manufacturer promptly, with supporting documentation. Avoid rush orders wherever possible – they can cause significant stress in your business and put a strain on the relationship with your manufacturers.
Pay your manufacturer’s accounts promptly. Communicate with a manufacturer before the due date for payment, should you foresee a delay in paying an account. Always pay on time. For the sake of emphasis, I’ll repeat this one: Pay your bills on time! You can negotiate for favorable payment terms before you place an order, but once the order is placed, don’t renege or attempt to change the rules. If you can’t, call up your manufacturer and tell them why and when you will pay. Don’t play games with manufacturer’s cash. You’ll be absolutely amazed at the goodwill and benefits you will earn by observing this simple rule.
Share information. Keep the good manufacturer aware of what’s going on in your company. Send them a quarter report. Tell them about changes in key personnel, new products, special promotions and so on. Many times, you’ll find that good manufacturers can help you find new customers.
At the beginning you have to set up a realistic annual target with the manufacturer, be transparent by sharing the details of tender prices, your gross margin, market size, competition. Ask manufacturer’s representative to do a site visit to the clients. Once you do all of that and incase you haven’t achieved the annual sales target manufacturers will still give you the support and work with you hand in hand to increase the sales year after year.