Distributor management Africa
After identifying and selecting African medical device or IVD distributors, managing the local partners is the next challenge.
Make sure you continue to invest and stay engaged in the relationship with the local partner.
Create a win-win working relationship where there is a real incentive for the distributor to deliver on targets set (e.g. new product launches, distribution coverage, launching marketing plans).
Local circumstances can be quite challenging (e.g. currency devaluations) so it makes sense to maintain a close relationship.
​
Some learnings from managing distributors in Africa:
-
Set clear goals, agreed by both parties. At the same time, don't feel bad about replacing a distributor with subpar performance. Outline clear goals on an annual basis; if not reached without good reason, don’t hesitate to replace the distributor when there are better options at hand;
-
Clearly divide the markets between the different medical equipment distributors. Cross-border sales must be avoided. Maintain a cross Africa manageable and transparent pricing structure to prevent parallel importing;
-
Establish proper reporting systems. Assure the African medical distributors share relevant market data based on which decisions can be made. The more frequently you have a dialog (not just email) with your counterparts, the better your relationship. Partners seem to perform better when they know they will soon have to report on progress;
-
Educate and train your partners on products (functionality and features, competitive offering) and branding. This will add to a transparent relationship and improve mutual understanding. Your dedication to the market will be rewarded;
-
Business has a strong personal element. Relationship building will play an important role in meetings;
-
Respect local (religious) customs and traditions. Be aware that African people are proud and they want to be treated in a professional and respectful manner.
​
​A distributor search and managing the distributor on your behalf can be combined. We are open to discussing the terms how we can support your local business.
