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All of these ideas represent relatively straightforward opportunities, which only require the application of
time and readily-available data to identify prospective action plans. But few manufacturers make the effort
to address these opportunities.

One reason is that the people who manage the wholesaler program are usually also tasked with managing
a sales region, buying groups, military, chains, schools, club stores, or other business segments as well. It
is little wonder that they cannot find time to continuously evaluate and improve the wholesaler program.

A manufacturer who has a significant wholesaler business, and is serious about maximizing the program’s
value, might consider establishing a fulltime “Wholesaler Program Manager” position.

A sample “WPM” job description would include:
1. Maximize Efficiency
▪ Constantly look for opportunities to take and ship orders in full pallet quantities.
▪ Maximize the use of EDI, EFT and other technology to streamline wholesaler order management

2. Continually build volume
▪ Meet with all redistributors on a quarterly basis to establish new customer and product targets
by region; review and correct any internal issues which are holding back growth.
▪ Review business gains and losses against target accounts.
▪ Coordinate ongoing work-withs among wholesaler sales people and the company’s Regional
Managers and Rep Agencies.
3. Utilize IT resources to convert the millions of bits of wholesaler sales data into useful information
to drive the business
▪ Monitor customer mix to make sure small-order customers are buying from wholesalers and
large-order customers are buying direct.
▪ Analyze category penetration by customer to identify and plug distribution gaps.
▪ Track volume growth and decline by customer, just as with direct-buying customers, and
implement appropriate action plans.
4. Monitor internal accounting practices
▪ Audit wholesaler pricing and promotion pass-throughs to ensure accuracy.
▪ When necessary, act as an advocate for new processes and systems to provide an accurate
picture of the impact of redistribution.
▪ On an annual basis, review all wholesaler programs against assumptions for cost offsets and
marketing value, to ensure that programs are kept up-to-date and fair for all parties.

If establishment of a full-time position is not feasible, many of these opportunities can be addressed
by building a wholesaler component into your quarterly sales objectives, and by conducting an annual
wholesaler program audit.

The wholesaler program audit should identify open issues and questions which need to be answered,
then the sources and methodology for gathering data. Ideally, it will be conducted with the knowledge
and cooperation of your wholesaler, and include an open sharing of information. And it should result in all
parties taking appropriate action and making adjustments so that the program always reflects the current
realities of the marketplace.

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