One of the first things you learn about this industry is that it is a relationship-based business. The more successful companies work hard to foster strong relationships with customers and suppliers alike.
Every distributor, whether large or small, touts a value proposition in terms of how it meets the needs and aspirations of its customer base. Central to that value proposition is the ability of the business to capitalize and coordinate its internal assets with the assets and capabilities of its vendors such that each contributes to its maximum capability. Those organizations that are strategically integrated, both internally and externally, with their business partners often enjoy a unique and explicit competitive advantage that serves its customer base and its bottom line. This does not take place by accident. Insightful companies have invested in the creation of a supply chain strategy. They are executed by a procurement group which understands what drives the requirements of its business and has a vested role in driving revenue, reducing costs and enhancing profits as opposed to simply facilitating the buying process.