5 Benefits of Long-term Supplier-Distributor Relationships

Establishing strong, mutually beneficial long-term relationships between suppliers and distributors can be a critical step towards improving performance outcomes across the whole supply chain. It can be great for cost efficiency and will enable growth and development on both sides.
5 Key Benefits of long-term supplier-distributor relationships:
1. Reduced Costs: Through establishing long-term relationships, both parties can actively look to avoid unnecessary costs. There will be no need for re-tendering or re-negotiation when all was sorted out at the onset of the relationship/partnership. Increased interaction, coming along with long-term partnerships will also lead to fewer incidents that can cause loss or poor performance. This is very common among medical companies who need to source expensive medications. Companies who are reliant on a distributor for their product line should take extra care in nurturing this important relationship.

2. Increased communication and efficiency: The understanding between supplier and distributor improves over time and with that also comes a better understanding of the customer market and the processes each follows. Better integration of business and financial processes will follow and grey area will disappear where issues might have been. Service will improve, become more efficient, and if issues should arise, it can be handled effectively.
3. Consolidation of the Supply Chain: When the relationship between the supplier and distributor develops, the buyer/distributor, will understand the products and services better, and can improve on possible problem points. In return, the supplier will develop a better understanding of the distributor’s needs. Both parties can look to consolidate existing products and services and see the potential for new products or services.
4. Continual Improvement: A long-term relationship will provide opportunities for continual improvement of products and services, as well as, service levels. This will be achieved by developing new processes and procedures and through product development, during the course of the contract term.
5. Outsourcing: Long-term relationships with trusted suppliers can enable the buyer, distributions organization, to outsource some of their noncritical activities. This will reduce internal workloads and can increase efficiency.
Long-term relationships can simplify procurement, warehousing, and logistics to bring supplier and buyer/distributor will bring significant rewards.…

The Supplier-Distributor Relationship; how does it work?

Suppliers have two channels for getting their products to where it should be, in the hands of clients. They can either do direct sales, which require them to be knowledgeable in all areas of marketing. This requires more manpower, more strategies that will include all aspects of marketing, supply chain, storage, selling and delivery.
Mostly, suppliers prefer to work with distributors to get their products to its destinations.
The Supplier:
A supplier produces products to be sold in markets and shops, etc. The term ‘supplier’ also includes farmers, growers, craftsmen, etc. A manufacturer produces merchandise applied more in the industrial area, for all kinds of uses, to be sold in markets, shops, etc.
The Distributor:

The distributor uses processes to make the product or service that is provided by the supplier, or manufacturer, available to the consumer that is in need of it. Distributing, includes, the buying of products from the supplier, correct pricing and the promotion of available products.
The distributor needs to have the correct type of storage space, warehouse, for products. They need personnel to manage the warehouse. They need clients and off-set points, for instance, grocery stores, restaurants, other food outlets, private persons, etc. They need personnel to run the offices, take and place orders, fill the orders and then it needs to be delivered on time, as scheduled when orders are processed.
What is the Nature of the Supplier-Distributor Relationship? Is it similar to the employer/employee relationship? Where the distributor performs a service for the supplier? Is it a Customer Relationship? Does the distributor only acts as a buyer of the product and the supplier does not care what happens afterward?
Not one of these approaches will have a probable successful relationship as an outcome. The supplier/manufacturer-distributor relationship should ultimately be a partnership.
When managed correctly, a partnership will pay off big dividends for both supplier and distributor.…

What does the term “luxury food” mean? Which foods can be identified as “luxury foods”?

A luxury food is usually a food item that is rare, and not to be found in regular food stores or farmed on regular farms, and therefore, also expensive. It may be that it is grown or bred in only specific parts of the world or certain seasons. You will typically pay higher prices for luxury foods. Prices may also vary from season to season.
List of Top Five Luxury Foods; based on highest price and on its considered luxury count:
1. Beluga Caviar; is the food item that is the most expensive in the world. The Beluga Sturgeon takes as long as 20 years to reach its desired size. These fish eggs are the largest of all that is used for caviar. The colour of the eggs range from purple to black and the ones that are the palest will be the most expensive. Caviar is mostly served on small pieces of toast.
2. Saffron; is the most expensive of all spices in the world. Saffron is made up out of the three stigmas and style inside the crocus flower. The spice can only be picked by hand and it takes thousands to make one single ounce of spice. Saffron is used for food colouring and the subtle flavouring of food.
3. White Truffles; are related to the underground ascomycetes family of tubers. Being the most expensive of the truffle family, it is generally served as extremely thinly sliced slivers placed on top of other food. It can also be sold as truffle-oil.
4. Kobe Beef; are raised from a special Tajima-ushi breed and is bred to secret and very strict traditions. It is fed on grain and beer and the meat is tender and fatty. These cattle are massage daily by their human owners.
5. Bird’s Nest; these nests are produced by specifically Cave Swifts that forms the nest through spitting a chemical compound that will harden in the air. This is considered a delicacy in China and is a most expensive animal product consumed by humans. It is usually served as a soup but can also be used in puddings.
Luxury foods are normally, foods that are, typically considered as high-value food and very unique in kind. These foods are usually made in small quantities from high-quality and expensive ingredients. It is seen as a food that has various benefits.…