Guidelines streamline processes, reduce transactional cost.
Press Release Summary:
PTDA released 2 publications to facilitate exchange of transactional information between distributors and manufacturers. "Guidelines for Managing Back Orders: Minimizing the Impact" uncovers issues regarding back orders and can assist in minimizing the effect back orders have on business and business relationships. "Guidelines for Successfully Sharing Cost of Goods Sold (COGS) Information" uncovers ways in which COGS information sharing can benefit distributors and manufacturers.
Original Press Release:
PTDA Releases Guidelines to Streamline Processes and Reduce Transactional Costs
Chicago, Ill.-March 31, 2009-Bringing together distributors and manufacturers in the power transmission/motion control industry has been the Power Transmission Distributors Association's (PTDA) niche in the industry for nearly 50 years. PTDA members know that improving communication and building trust between trading partners improves efficiency and lowers the cost of operations, allowing them to deliver exceptional customer service, innovative solutions and cutting-edge technology to their mutual customers. In fact, in a membership survey conducted in 2008, PTDA members identified distributor/manufacturer relationships as one of the top external and internal issues that will impact their businesses over the next three to five years.
In continuation of its ongoing efforts to facilitate the exchange of transactional information between distributors and manufacturers, the association recently released two publications.
Guidelines for Managing Back Orders: Minimizing the Impact
Developed by a task force of the Industry Relations Committee, this publication is the culmination of work begun last year in investigating the major issues surrounding the communication and resolution of back orders. In the ideal world, every product would be available where and when the customer needs it. In practice, there are times when the product needed isn't readily available and becomes "back ordered."
Just hearing the phrase "back order" causes shivers in even the most experienced and professional of distribution and manufacturing executives. At the most basic level, a back order usually means a disappointed customer. Handled poorly, a back order can escalate into a situation in which trust is questioned and business is lost. Recognizing that relationships between distributors and manufacturers can be improved with a comprehensive process for communicating and resolving back orders, a task force was appointed to uncover the issues surrounding back orders. While the actual resolution of back order issues rests with the distributor and manufacturer involved, the guidelines developed by the task force can assist in minimizing the effect a back order has on business and business relationships. Their findings as well as examples of how these issues have been addressed by channel partners within the power transmission/motion control industry are included in this publication.
The publication is available on PTDA's Web site at www.ptda.org/BackOrders.
Guidelines for Successfully Sharing Cost of Goods Sold (COGS) Information
The Industry Relations Committee and the Manufacturer Council combined forces on a joint task force to uncover ways in which the sharing of cost of goods sold (COGS) information can be beneficial for both distributors and manufacturers.
Distributors are familiar and comfortable with receiving information from manufacturers on an almost constant basis-product and price information updates, new product announcements and back order notices. There are also times when information goes the other way-from distributor to manufacturer. For a manufacturer, information from their distributors about who is buying their product can assist in creating products that meet market demand, uncovering new applications for existing products and fairly compensating their employees.
The guidelines use the COGS Format adopted by PTDA a few years ago and improves its use as a business tool with additional materials to encourage distributors to provide COGS data and to encourage manufacturers to make use of the data in a way that benefits the entire supply chain.
The publication is available on PTDA's Web site at www.ptda.org/COGS.
Founded in 1960, the Power Transmission Distributors Association (PTDA) is the leading association for the industrial power transmission/motion control (PT/MC) distribution channel. A U.S.-based trade association, PTDA represents 204 power transmission/motion control distribution firms that generate more than $10 billion in sales and span 3,500 locations in North America and 12 other countries. PTDA members also include 198 manufacturers that supply the PT/MC industry.
PTDA is dedicated to providing exceptional networking, targeted education, relevant information and leading-edge business tools to help distributors and manufacturers meet marketplace demands competitively and profitably. For more information, visit www.ptda.org.
Contact:
Ann Arnott
Power Transmission Distributors Association (PTDA)
aarnott@ptda.org
+1.312.516.2100
