Distributors must adapt selling model – UPS report

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Increased direct-from-manufacturer (DfM) purchases and B2B e-commerce expectations are forcing industrial distributors to adapt their selling model, a new study by UPS has revealed.

More and more industrial customers are purchasing goods directly from the manufacturer, according to the UPS Industrial Buying Dynamics study, which is based on responses from 719 purchasing professionals in France, Germany, Italy and the United Kingdom.

It found that 65 per cent of industrial customers are already bypassing industrial distributors and an additional 30 per cent are currently considering to purchase DfM.

More than 50 per cent of the European industrial supplies buyers are sourcing and buying online with many (42 per cent) spending more than half of their budget in this way. Some 75 per cent of respondents said they would shift spending to a distributor with a more user-friendly website and better customer service.

“Once price and quality standards are met, buyers are willing to explore vendors that better fit their needs, whether because of a more convenient web site, a better service offering or simply quicker answers to product questions,” said Scott Aubuchon, vice president for marketing for UPS Europe. “To maintain their market position, distributors must adapt their selling model and provide excellent service.”

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