As a manufacturer, you know that maintaining a good relationship with your distributors and customers is critical to your business' bottom line. Treating these relationships more like partnerships can have beneficial results for both parties. A solid long-term relationship is based on trust, commitment and open communication - just like a marriage!
Distributors need to be committed to the products and marketing programs, promote the products effectively and manage inventory properly. Manufacturers must make sure that they manage their territories consistently, fill orders on time, and set realistic targets for their distributors. Both parties need to communicate and work together to establish their common goals and devise a plan for meeting those goals.
If you are planning to set up manufacturing in China or India because of lower labor costs you must also be aware that operating costs can be much higher than in other countries. Rising inflation has affected the cost of raw materials, labor, transportation, energy and land. And there may be significant delays due to bureaucratic red tape. It is essential to work closely with local partners that understand the cultural and political nuances and can negotiate the administrative maze effectively.