A failure to communicate

"What we have here is a failure to communicate." This famous line from the 1960s movie Cool Hand Luke describes the current state of many manufacturer/distributor working relationships.

A recently completed four-year study of manufacturers and distributors by the Industrial Performance Group of Northfield, Ill., revealed that high-quality communication is virtually non-existent in most working relationships. In fact, two-thirds (68 percent) of more than 2,500 manufacturers and distributors that participated in this study indicate that communication between the two parties sunk to an all-time low during a period known as the information revolution.

The importance of communication
Communication is the sharing of information between manufacturers and their distributors. Information provides the working relationship with a sense of purpose and direction. It also provides a mechanism for efficiently allocating and coordinating resources. In the absence of information, the purpose and direction of the working relationship become blurred, decisions turn into guesswork, consuming valuable resources with activities that waste large amounts of economic wealth (money).

Manufacturers and distributors did not intend to drive their working relationships to a point where trust and communication are virtually non-existent and economic wealth is being wasted at an alarming rate. These conditions are the long-term implications of the decisions made and actions taken by both parties in the past.

Caught in the flurry of technological advances and current management fads, manufacturers and distributors have lost sight of the fact that open and honest dialogue, rather than a continuous monologue of complaints, forms the basis of a productive and profitable working relationship.

How does the MROP industry segment compare?
In an effort to determine how manufacturers and distributors in the maintenance, repair, operations and production (MROP) industry segment compare to other industry segments in terms of communication and the problems that occur due to a lack of information, Industrial Performance Group is sponsoring an e-survey.

The findings of the survey will be presented at the November I.D.A./ISMA Fall Convention in Chicago by IPG’s Robert Nadeau. A detailed report of the findings will also be available at www.progressivedistributor.com.

If you participate in this industry segment, please take the time to complete this important survey. The survey will take you about two minutes to complete. However, the information generated by the survey will help manufacturers and distributors in the MROP industry segment improve sales performance and profitability.

back to top                                          back to online exclusives