Distributors and manufacturers can find themselves at odds when it comes to supply chain management. Overcoming siloed data streams, friction in workflows, and misalignment on goals can cause tension in partnerships. In worst case scenarios, these disconnects can lead to arguments, disputes, and a lack of customer focus.
It pays to focus on a solution. Enable’s Overcoming the Misalignment Between Supply Chain Partners report surveyed nearly 250 manufacturers, distributors, buying groups, and retailers, and finds that those who actively collaborate tend to work more effectively together.
But there’s work to be done. Just 10% of distributors report strong alignment with their trading partners, while approximately half note a lack of alignment about 50% of the time.
The story is slightly different for manufacturers, which points to a disconnect or collaboration gap. Up to 76% of manufacturers report alignment with their trading partners. Collaboration gaps often lead to one partner feeling left out of the process and can create significant friction.
Case in point: 60% of manufacturers say that their relationships have remained stagnant or grown weaker and just 25% of retailers believe their relationships have grown stronger.
Organizations that can overcome these barriers and collaborate effectively across the supply chain may benefit by reductions in inventories and costs.