How value-added services can set distributors apart 

by | Sep 16, 2024 | Data Management, Distributors, Inventory Management, Order Management

It’s never been more challenging for an industrial distributor to stand out from the competition.

The days of relying on simply stocking the right products and building good relationships to grow your business have evolved into a race to provide much more. Customers now expect the “Amazon experience”—fast, easy and available on demand.

For distributors already struggling with supply chain disruptions, labor shortages and compliance and cybersecurity risks, the leap to that kind of technical and digital expertise might feel impossible. But there is an avenue worth considering that can provide customers with a better end-user experience: offering value-added services.

Why do value-added services matter?

Value-added services are about going the extra mile to give your customers something beyond the product itself.

Offering unique services can set you apart from the competition to:

  • Meet your customer’s needs: Give tech-savvy buyers more than just products – offer solutions.
  • Build your relationships: Provide value beyond transactions to build loyalty and long-term partnerships.
  • Raise your ROI: Increase sales, improve efficiency and boost your overall profits with strategic value-adds to elevate your customer experiences.

What are value-added services?

Distributors can consider offering services across a range of areas based on the needs of their customers.

Options for value-added services include: 

  • Kitting, assembly and light manufacturing: Reconfiguration of stock products to meet the needs of a customer. Think pre-assembled kits, modified components and customized packaging.
  • Technical support or field service: Expert support to customers that need help, from basic product information or instructions to on-site troubleshooting of equipment.
  • Vendor managed inventory (VMI): Distributor management of inventory housed at customer locations (typically bins or vending machines). Simplify customer inventory management with automatic replenishment to free up their time and resources.
  • Rental and service: Rental of high-value or specialized products or equipment in lieu of purchase.
  • Value-added processing: Services like product setup, software setup, and repairs.

Adding value, reaping rewards

While the goal of offering value-added services may initially be to stand out from the competition, industrial distributors can expect many more benefits in the long run.

  • Happier customers: Providing a tailored experience fosters customer satisfaction and loyalty.
  • Increased sales: Offering value-added services opens the door to new business opportunities and increased revenue.
  • Operational efficiency: Developing enhanced product offerings can drive streamlining of supply chain processes and maximize overall efficiencies.

How to make value-added services available today

While value-added services can be a key differentiator for you in a competitive space, we know that many distributors find themselves so bogged down in inefficient processes and poor supplier communications that the idea of adding even more to your plate can seem daunting.

The solution lies in streamlining supplier interactions, to free up your team’s time so that you can focus on what truly matters—delivering exceptional value to your customers.

With SPS Commerce you gain:

  • Seamless communications
  • Clear inventory visibility
  • Efficient order management
  • The time to focus on what truly sets you apart.

We’re here to support you as you expand your offerings and provide the best experience for your customers. Ready to learn more? Visit our Community page.

Matt Brolsma
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Industrial Distribution Blog

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