As a distributor, securing corporate inventory programs can help you add value for clients and build enduring relationships. However, these programs require extensive set up processes and need to be run profitably. The document lists 12 questions distributors should ask themselves to ensure corporate inventory programs are financially sustainable and managed efficiently, such as who will finance inventory, manage the program, integrate with client systems, and ensure website security. Distributors are advised to thoroughly evaluate these factors before taking on new corporate inventory programs to avoid potential bankruptcy risks.

1. As a distributor in today’s fast paced promotional products world you’ll need to have consultative selling
skills, add value for your clients and secure enduring relationships.
There are many ways to accomplish this, but one sure fire way is to land profitable, well run corporate inventory
programs. These are often won through competitive bid situations and once the agreements are signed a long
drawn out set up process ensues. In addition to bidding and set up there is the financing of inventory, the ability
to tie into the client’s technology (and remain secure!) and make sure the program flows smoothly with the
client being satisfied.
With all that in mind you need to make sure that you can first run the program and second run the program
profitably. A program that doesn’t perform profitably will severely impact the distributor and in some cases put
them at risk for bankruptcy. Stay away from the lure of the revenues and make sure at the end of the year you
have put money in the bank due to the program. To get you started ask yourself the following 12 questions.
These will provide a great starting point to make sure you are moving in the right direction.
Who is going to finance the inventory – The client, you or a bank loan?
If the program you acquire has inventory who will buy that existing inventory from the current
distributor?
Who is going to build the website, what are the costs and will it have features such as real
time inventory?
Will it be a real ecommerce site?
Who is going to manage the program? Will you have a dedicated program manager?
When new products are requested by the client what will be your process to add them to the
site? For example, who will do the photo shoot, order the inventory and set up the web page?
If you are a sales person working for a distributor when will you be paid on order entry,
monthly?
With the RFI and RFP who is going to do the presentations and fill out the contracts?
Who will host your site?
Will you be able to have ecommerce integration with Ariba, People Soft and/or procurement
integration?
With all the data breaches what will be your level of website security and will you be able to
have credit card encryption?
For multinational corporations will you have translation capabilities?
Profitable Corporate Inventory Programs
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