Territorial coverage is only one factor in choosing a distributor. Your candidates should offer experience in your target sector, a track record of marketing products in your category, and a well-established customer base that you can use. If potential distributors are currently marketing products that compete with your range, you must obtain an agreement on the resources that distributors impose on each OEM`s products. Customer relations play an important role in the development of the OEM-to-distributor process. You have to decide who has the main relationship with customers – you or your distributors. You can decide to provide technical support and other services from your own resources. B so that the distributor provides only one sales and logistics service. This will give you more control over the customer relationship and ensure that the customer receives support according to your quality standards. The first OEMs work with distributors to market their products. Distributors purchase equipment products, store them and sell them to customers in their designated areas. Distributors also provide technical support to local customers and other services, depending on the product. The OEM-to-distributor process covers a number of phases, including distribution strategy, reseller selection, logistics, supply chain cooperation, and training and support for distributors. Appointing a distribution network allows your business to operate a sales, marketing and after-sales service business in areas you can`t cover with your own resources.
If you have identified areas that you want to cover in the domestic and export markets, identify potential distributors for each sector. The relationship between the OEM and the distributor is based on a formal agreement. The agreement includes distributor storage, sales objectives, discount levels, logistics agreements, customer service and marketing activities. It should also cover the extent of the financial assistance, training, branding and marketing that you will provide to the distributor. The terms of the agreement vary depending on whether you are dealing with independent distributors or franchise distributors who only market your products. An effective OEM-to-distributor process requires a high level of cooperation and support.