It doesn’t matter what kind of the products you sell, a lot of what is needed to set up a B2B  distributor business is the same across various sectors. From hiring and managing cash flow, to sale and inventory control.

To guide you here are some tips to maximize your success:

1 . Hire the right people.

While it may sound like an obvious tip, many companies that act as a distributor fail to put enough effort into their hiring process .

Hiring decisions are some of the most important decisions you can make for the success of your business.

Make sure that you are properly evaluating each new position and analyzing each candidate against that reference.

During the interview, avoid general questions that “guide” the candidate to the right answer and instead focus on behavioral issues using phrases like “Think about a situation where you …”.

This will give you a clearer idea of ​​how the candidate will handle and perform certain situations.

2 . Stop taking and managing orders manually 

According to a recent survey, inefficiency in the sales process was cited as the main challenge for order management among companies operating in the distribution and industrial sectors .

Many distributors are still receiving their orders inefficiently such as paper forms, order books and Excel spreadsheets.

Some distributors have taken steps to use the technology when receiving orders by e-mail and WhatsApp , but these methods are not the best as they make management difficult.

With the spread of mobile technology in our lives, many distributors are taking advantage of technology and artificial intelligence to automate their sales , giving representatives and sellers access to customer information, product catalogs .

3. Control your inventory.

You cannot run a profitable distributor in the industry if you don’t know how to handle inventory management.

Some companies have a system of maintaining minimum stock levels in their warehouses, replenishing with new stock when the levels fall to the minimum.

Others maintain security stocks on certain products to protect against sudden spikes in demand, while others use a “ Just in Time ” inventory strategy .

Controlling incoming and outgoing inventory, making regular physical counts and coordinating inventory levels with fluctuating demand are essential factors in deciding what kind of inventory management strategies are ideal for your business.

4. Give your sales representatives what they need to succeed

Do your sales representatives have all the information they need to close a sale?

Industries , wholesalers, manufacturers and distributors forward thinking understand that to make sales today , the representatives of trade need to add value in their sales approaches, not just write down and take a new order.

Successful distributors are helping their sales representatives with easy access to information, such as order history, best-selling items and personalized consumer analysis tools for each customer.

They are also providing customer-specific online digital catalogs , so representatives don’t have to waste time memorizing data or looking for prices .

Instead, they can focus on what they are really there to do: sell.

5. Stand out with the best customer service, not price

Today, all wholesale distributors are operating in an incredibly competitive market as a result of various factors including the global COVID-19 pandemic

A lot of businesses try to differentiate their brands in price, in the hope that lower prices and margins will lead to higher sales volume.

This approach, however, is not very effective for long-term growth of your business

Instead, companies that can make their brands stand out by providing excellent customer service are seeing greater returns.

Brainstorm on how you can create a modern and convenient experience for your customers without taking a cut on product pricing.

How can you fulfill orders more quickly and replace transactional activity with strategic value?

6. Keep your cash flow under control

Cash flow is the lifeblood for any B2B distributor business. 

One of the biggest mistakes a distributor can make is providing an excessive amount of credit to their customers.

Avoid doubling the demands for extended payment terms and be diligent in collecting receivables.

Accept credit cards, bill / get paid online and outsource billing if necessary.

It is also important to remain aware of your financial status at any given time.

Produce regular reports that include information such as cash availability, daily / weekly / year-to-date sales, accounts payable, main inventory, items with the best / worst sales, etc.

 7. Invest in an ordering system

This is extremely important.

According to a recent report released by IT consulting giant Accenture, 86% of the top B2B companies surveyed are already offering their customers the option of placing orders online through an ordering system. Only 14% are not .

As customers get used to the convenience of placing orders online in their daily lives, those same expectations increase in their professional lives .

Companies that are able to implement omnichannel strategies (allowing customers to place orders through the representative, on the web or on a mobile device) are already receiving returns.

Whoever does not take these steps will be left behind.

Conclusion

To be successful, B2B distributors must digitize order management and shipping processes to increase efficiency .

If you are selling through multiple channels, such as field salespeople or a B2B e-commerce portal, consolidate these orders for more efficient service and management.

At the end of the day, what will make you successful as a distributor will be your ability to establish strong and lasting relationships with your customers.

By prioritizing online service for your customers, adding value during sales approaches and making service digital and faster , you’ll be ready to create a long and solid list of repeat customers. 

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