What distribution channel strategy would be optimal for sales to OEMs?

Distribution channels are firmly embedded in the off-highway supply chain. They provide suppliers with local relationships with OEM, language and cultural capabilities, stock, logistics, credit, commissioning and field support. These functions remain valuable.

However, digital marketing, e-commerce and AI are changing what OEMs expect and what manufacturers can do themselves.

OEM buyers increasingly expect and prefer to:

• Find detailed product information independently - online first

• Spend LESS routine in person time with suppliers - Time efficiency matters - and that sometimes means zoom or teams is a preference, not a compromise

• Receive faster and more informed responses As engineering becomes more complicated, they want shorter lines of communication - direct with suppliers own engineers rather than intermediaries

• New, professionally buyers are trained to look for opportunities for disintermediation (removing intermediaries)

  At the same time, suppliers, many of whom are looking for increased profits on stagnant sales revenues can now:

• Identify and reach OEM decision-makers directly with digital tools

• Support multiple languages and markets in house through the use of AI

• Build awareness without relying entirely on local representatives

• Provide technical self-service resources

• In some cases manage e-commerce directly

Now is a great time to rethink distribution strategies. Whilst language, cultural, relationship and communication role is likely to recede, there an increasing need for:

• Product customisation and integration

• Local stock - particularly in a world of increasing tariffs and trade friction

• Service and support

And this means a fundamental look at how many distributors, and what their structures and capabilites should be. How are these distributors managed, rewarded, motivated? What investment and commitment are distributors prepared to make. Many supplies are failing to grasp this changing world, and that will harm their market presence and growth.