VENDOR RELATION AND

DISTRIBUTION STRATEGY
• vendors in the retail industry, these companies can be a direct
manufacturer or a wholesale broker, who obtains items in large
quantities and sells them through smaller orders to retailers.

• Knowing how to develop a relationship with your suppliers so that

they are responsive to your store's needs will help ensure your
company's success
• What we need short term relationship/ long term relationship
strategic relationship

What is
strategic relationship
(Or)
Partnering Relationship
strategic relationship
• A strategic relationship is called as partnering relationship, is when a
retailer and vendor are committed to maintaining the relationship
over a the long term and investing in opportunities that are mutually
benefited to the parties.

• Its win win relationship.

• Both parties will be benefited

Maintaining Strategic Relationships
• Mutual trust

• Open Communication

• Common goals

• Credible commitments
Building Partnering Relationships

• Phases in buildings relationship are by increasing levels of

commitment:
• Awareness (no transactions)
• Exploration(explore the potential benefits and costs)
• Expansion
• Commitment(Stage of strategic Relationship)
NEGOTIATION WITH VENDORS
• Consider History
• Asses where things are today
• Set goals
• Additional mark up opportunities
• Terms of purchase
• Transportation
• Delivery and Exclusivity
• Communications
• Know vendor’s goals and constraints
• Facilitate good understanding in negotiating session (like legal, financial and managerial issues)
• Plan to have at least as many negotiators as the vendor
• Choose a good place to negotiate
• Be aware of real dead lines
DISTRIBUTION CHANNEL