Responsibility of Distributor for Customer Complaints - How should we handle this

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DietCoke1953

We are a hydraulic design, repair, and parts company. We are a distributor for one of the largest Hydraulic parts manufacturers, our sales of their products accounts for a large % of our revenue.

With that said, we have a continuing problem where our customers lodge complaints with us for issues that we have no control over, late shipments from the factory, parts not properly packaged and damaged in shipment, parts mis-labeled or wrong part with correct label...etc., but because we represent the Mfg., they hold us responsible.

We have no leverage to make them change, it's a "we need them more than they need us situation".

Any thoughts on how we should handle these issues? We currently document the issues on CAR's, but have no leverage to force corrective & preventative action.

Thanks
 

harry

Trusted Information Resource
...................... "we need them more than they need us situation". ....................

This is the crux of the problem. I supposed you need to caution your customers so that they are prepared for all those shortcomings you mentioned earlier. Meanwhile, continue to keep the manufacturer engaged and updated and hopefully things will change if they wake up one day.

This situation is pretty common in a growing market and distributors like your organization are often on the look out for a better manufacturer to represent in order to provide a better deal for their customers.
 
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trainerbob

This supplier must have other distributors with the same problems. As you bring these problems to them maybe there is an opportunity for you to offer to help them solve some of these issues. It would seem as though there is someone in their organization that this information would mean something to. Possibly you havenb't gotten to the right person yet! Meanwhile I guess I would be looking for a more reliable supplier
 

AndyN

Moved On
We are a hydraulic design, repair, and parts company. We are a distributor for one of the largest Hydraulic parts manufacturers, our sales of their products accounts for a large % of our revenue.

With that said, we have a continuing problem where our customers lodge complaints with us for issues that we have no control over, late shipments from the factory, parts not properly packaged and damaged in shipment, parts mis-labeled or wrong part with correct label...etc., but because we represent the Mfg., they hold us responsible.

We have no leverage to make them change, it's a "we need them more than they need us situation".

Any thoughts on how we should handle these issues? We currently document the issues on CAR's, but have no leverage to force corrective & preventative action.

Thanks

It seems to me that you have a number of opportunities to weigh. You could, for example, have all those parts shipped to you, hold a buffer stock, put in the work to correct the shipping errors etc. You, in effect 'pick up the slack'. It's a cost, but it might be what you need to buy time.

Clearly, whomever your company deals with at the manufacturer isn't at the right level to make a difference. You can bet they have the same issues, they aren't 'saving' them all for you. I'd arrange a meeting of your top management with a 'heavy hitter' at their corp. offices to lay out their poor performance - and any offers of help you may wish to provide (help them to help you)

You can take a look around and see if anyone else does the same types of products - maybe someone off shore! If you can get better service and quality from another manufacturer, why not ditch the troublesome one? Would your customers still buy from you if you planned and executed the transition properly? Many have done it before.

So, you have at least 3 options, others may see more.
 
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