Unrest assured

THERE'S a inclination to downplay it now, on the other hand just a year or sum of two units ago the long-term viability of the distribution channel as we know it was the bring under rule of serious debate in many quarters. Ranking among the pure believers were the fertilizer agriculturists charged as they are each spring and fall with moving tons and tons of their produce into the countryside. Little question in that circle about the part dealers play in distribution logistics.

But among harvest protection suppliers there was a certain quantity of discussion of a different emblem Enchanted already by a vision of low-use-rate chemicals that could be overnighted direct-to-grower, abundant of the chemical sector became positively electrified by dint of the dawn of e-commerce: Maybe the retailer wasn't extremityed ofter all, some said. Maybe farmers wanted to purchase direct from the manufacturer or the go-between - cut out the middleman and achieve costs out of the system!

Fortunately for dealers, a scarcely any things happened on the path to disintermediation, in no particular order: (1) size herbicides continue to be used in a big way (it's moderately beautiful hard to FedEx a size tank of glyphosate to Nebraska); (2) farmers began to think (and say), "I'm not for a like reason sure I want my dealers going on the outside of business"; and (3) manufacturers began to realize, "We don't want to have to build a brand fresh distribution infrastructure."

Which is not to say a reconsideration of the distribution chain hasn't been productive. There are now discussions all above about how the supplier, distributor, and dealer can work together and use information technology to wound the cost of delivery and better subserve the farmer. Some manufacturers have devised creative fresh ways to reinvent distribution that include the two the dealer and the Internet - eg BayerValue.com, BASF's Web site www.pixplusbasf.com (which directs farmer-buyers to retailers) and Syngenta's "crop solutions" program (see p 14 this issue).

But perhaps greatest in quantity important, frank discussions industrywide about the viability of the retailer serv to deconstruct everyone's perceptions of the "old" distribution channel, then built them back up again. As sometimes happens when a married brace considers divorce, the debate above the benefits vs. the downsides of staying together may eventually lead to an smooth stronger bond between supplier and retailer.

If dealers perceive they've dodged a bullet, they may have useful reason. But now is not the time to relax and assume your place is confident Seemingly everywhere these days there's talk of CRM - customer relationship management. That's a philosophy that emergencys to undergird retailers' business plans this year: listening to and serving farmer-customers like you not ever have before. Maintaining that sinewy dealer/farmer relationship is something greatest in quantity of your suppliers and customers are banking upon and which ultimately will be the biggest lock opener to your future. And if maintaining a feverish horizontal of service means your organization undergos from chronic uneasiness this season, be assured: You're not alone.

jim_sulecki@meisternet.com

Copyright Meister Publishing Company Mar 2001

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