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Trading Companies What They Do and How to Use Them September 29, 2011 Lee Mulkey ALM COMPANY A Professional Management and Advisory Firm for Global Wholesale Distributors and Manufacturers That Sell Through Distributors.
Trading Companies  What They Do and How to Use Them ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Trading Companies  What They Do ,[object Object],[object Object],[object Object],[object Object],Focus on Import Trading Companies (ITC’s) today.
Import Trading Companies (ITC’s) I’ve used
Why ITC’s ,[object Object],[object Object],[object Object],[object Object]
What ITC’s Do ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
You Can Eliminate the ITC – But You Can’t Eliminate What They Do   Price guarantee, Foreign Exchange ,[object Object],Liability, Warranty, Replacement, On-time Delivery ,[object Object],Order Processing Costs ,[object Object],Credit Terms, Currency, Terms & Conditions of Sale ,[object Object],Freight., Customs, Expediting ,[object Object],Time & Legal Costs ,[object Object],Qualifying Lowest Bids ,[object Object],Product Knowledge, Inspection ,[object Object],Cost Represented Steps in Supply Chain
Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object]
Strategy ITC Integration Principal ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Conflict Management Conflict arises when the behavior of the ITC is in opposition to what you want.
When Conflict Is Good ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
The ITC Must ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Managing the ITC Relationship ,[object Object],[object Object],[object Object]
Tools to Manage the ITC If You Are Primary or a Secondary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Tools to Manage the ITC If You Are a Tertiary ,[object Object],[object Object],[object Object],[object Object],[object Object]
 
ALM COMPANY A Professional Management and Advisory Firm for Global Wholesale Distributors and Manufacturers That Sell Through Distributors 01-817-291-4323  [email_address]

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Trading Companies.9.29.11

  • 1. Trading Companies What They Do and How to Use Them September 29, 2011 Lee Mulkey ALM COMPANY A Professional Management and Advisory Firm for Global Wholesale Distributors and Manufacturers That Sell Through Distributors.
  • 2.
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  • 4. Import Trading Companies (ITC’s) I’ve used
  • 5.
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  • 8.
  • 9.
  • 10. Conflict Management Conflict arises when the behavior of the ITC is in opposition to what you want.
  • 11.
  • 12.
  • 13.
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  • 16.  
  • 17. ALM COMPANY A Professional Management and Advisory Firm for Global Wholesale Distributors and Manufacturers That Sell Through Distributors 01-817-291-4323 [email_address]

Editor's Notes

  1. SPEAKING NOTES Short Lecture: Review the types of intermediaries that comprise the marketing channel. Note that not all of these intermediaries are used by the firm and will vary depending on the industry, product, and other factors as to what channels will be used. Comment that the Marketing Channel is often referred to as the Trade of Distribution Channel. Wholesalers & Retailers – Typically called merchants, or distributors (wholesalers) and buy, take title to, and resell the company’s products. Brokers, Manufacturers’ Reps, & Sales Agents – Look for customers, may negotiate a deal, but do not take title to the products. Facilitators – May take part in the distribution process but generally do not get involved in selling or take title to the products themselves. OPTIONAL QUESTIONS TO ASK: Ask the participants what kind of intermediaries are typically used by domestic firms in China? Ask the participants what kind of intermediaries and/or facilitators does ADI use in China? Ask the participants what kind of intermediaries are typically used by foreign firms with no or little physical presence in China but want to sell their products here? Estimated time for this slide and discussion is 3 minutes. Reference: Kotler, pages 504 & 505.
  2. SPEAKING NOTES Describe some of the ways to manage the distributor if in the 3 rd or below position: ETDBW – Channel Compensation to Individual – but not as a company policy. Reward – not a bribe. Pricing strategy – refer to AMLP. Internal Champion – Define and how to reward.