SWDA & The Power of D Growth Through Distribution
The power of effective distribution.
The Souvenir Wholesale Distributors Association (SWDA) would like to introduce you to the Power of D—the value that distributors bring to the supply chain in the souvenir and tourist products industry.
Though the industry is changing with the advance of technology and graphic design capabilities and the increase of off-shore manufacturing, the distributors’ role is more important than in the past. The volume of products and dollars flowing through the channel is greater than ever. Through all this change, SWDA remains committed to strengthening the role of the distributor in the souvenir and tourist products industry.
Sales and the Power of D
Thee true strength of the Power of D is in customer relationships. Without exception, retailer relationships are the biggest asset a distributor brings to the supply chain. Getting your products to one distributor exposes them to hundreds or even thousands of retail stores that might not otherwise see them.
Distributors have frequent contact with their customers. They build relationships that would be both difficult and very expensive for manufacturers to duplicate. They provide a level of service and local knowledge that is more focused than the manufacturer can provide. Because of their closer relationships, they have a better understanding of the locale’s and retail stores’ needs.
Inventory and the Power of D
In addition to sales relationships, distributors add value by managing inventory. For manufacturers, that value manifests itself in terms of fewer shipments in larger quantities.
Containing costs through consolidation is at the core of the distributor’s existence. It’s much more cost efficient for a manufacturer to send a distributor five pallets of freight than to send a box or two to 500 different retailers.
Cash Flow and the Power of D
Credit and collections factor into this equation as well. Because distributors shoulder this responsibility, manufacturers do not need the personnel, systems and equipment necessary to invoice and collect from thousands of retail businesses. Fewer, more reliable accounts means reduced risk associated with financing receivables, while collecting on them sooner. Sharing the costs of inventory and distribution provides opportunities to control overhead and capital investment.
Retailers and the Power of D
A discussion of the Power of D is not complete without mentioning what it means to retailers. Distributors must justify their existence on both sides of the supply chain. Their services to retailers provide manufacturer with healthy retail organizations able to effectively more products to the consumer.
You Can’t Avoid the Cost
You can avoid the distributor, but you can’t avoid the cost of distribution. From the manufacturer’s standpoint, you can prepare to deal with small, fragmented shipments, invoicing, customer service and collection problems, warehousing and transactional costs. But can you be in thousands of retail locations, keep them stocked with product specific for their locale, and get them product when they need it? Can you serve as consultant and confidante on a broad spectrum of industry issues? Can you duplicate the bond and trust that distributors and retailers share from years of mutually beneficial relationships?
In the end, distributors can do all of these things more efficiently and more economically. That’s the power of D. Put it to work for you.
For more information about how you can put the Power of D to work for your organization, contact SWDA at swda@ksgroup.org.
Retailers, to search for a souvenir wholesale distributor in your region, visit the member directory.
