Distributor partnerships with ABB

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A wide range of power and automation products and services from ABB available through distributors

Distributors are highly valued partners of utilities, OEMs, system integrators and industrial and commercial customers. We understand that distributors provide the best possible long term value for their customers by making their products and services supply chain more efficient and reliable.

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ABB offers to distributors various cooperation models: from channel sales without a binding agreement to partner programs covering all the legal aspects of a strategic partnership like responsibility, liability, commercial conditions, etc.

Our engineering, manufacturing and logistics capabilities combined with the detailed local market knowledge and expertise provided by our distributors help drive sales both broader and deeper across the world and help them achieve success in their businesses.

RESEARCH ALERT (AHEAD OF PRESS): Retailers exit relationships with brands that create a direct sales channel; especially the less powerful retailers do so. Q: if we open a direct sales channel will distributors punish us by exiting? A: Yes, they will exit or carry fewer of our SKU's. Q(ualifier): Especially less powerful distributors will do this. I have seen this topic in the industrial machine and service industry. What I have witnessed there: From the manufacturer side: &#; It is tempting to operate a direct channel (greater customer control, less distributor dependency). &#; It is hard to get the right people on board and they are typically more expensive inside the large manufacturer than with smaller distributors. &#; It is impossible to mimic the distributor DNA, thus customer service is less and service is more epensive. &#; A model where manufacturer does direct sales and begs the distributor to take the service part is destined to be not acceptable for the distributor. From the distributor side: &#; Never go easy on manufacturers that do this. Partnerships go both ways, so do marriages. If they go south, they go south on both sides and you should open your channels to secure other partnerships. &#; Do not break the relationship completely, it is not worth it. But cherry pick more aggressively. &#; Ensure the loyalty of other manufacturers that reciprocate your loyalty and preferably make clear contracts so the agreement is clear. Overall, many direct channels of manufacturers are a failure story. We can't all be Apple or Tesla. Most of the manufacturers that go direct did not think about all the complexities serving customers from closeby and underestimate the distributor channel response. In athletics, Nike did brilliantly on its direct channel, but Asics failed miserably for exactly this reason. Congratulations to my colleague Michiel Van Crombrugge and his co-authors Kathleen Cleeren and Els Breugelmans for a nice piece of rigorous research in one of our top journals with clear real-world implications! A wonderful example of the awesome research my colleagues are doing in our marketing group at Erasmus School of Economics. https://lnkd.in/eFRiwPpm

If you are looking for more details, kindly visit Abb Drive Distributors.