With Traditional Trade enjoying something of a revival due to the extended recession some savvy companies are sorting out their RTM distribution networks. This will provide an immediate advantage over competitors and once the recession cloud blows over they will be better prepared to maximise sales in the TT and Internal Key Account (IKA) channels.

It really is not rocket science and here is an initial selection of essential elements of a prosperous RTM network.

Relationship. Both parties have to work hard at the relationship. You cannot switch it on and off; it is a full time job.

Objectives. Share your objectives with your partners to ensure alignment all the way to the shopping basket. If they are “ploughing the same field” you have a good chance in the market.

Understanding. Believe it or not but good Distributors are likely to have a better understanding of TT than your own teams. Get them involved in the decision making process and use their knowledge to your advantage.

Training. This is not always high on the list of important actions but it should. If you want your Distributor representatives to be your extended sales team you must provide training in sales skills. Importantly, this must be topped frequently and up as new recruits arrive.

Experience. Few are brave enough to enter a territory with a Distributor who is also a fresh face on the market. You might take a look around and see who is already established and may or may not have a complimentary product range.

Trust. If you do not really trust your Distributor partner then do you really think the relationship will work? If you are always suspicious of them they will never perform as you desire.

Order management. Spend some time on seeing first- hand how your Distributor sales people manage order capture and processing. This is the key moment a client decides where to place their orders so it deserves attention.

Meetings. Do not be a stranger to your Distributor partners. Routine meetings at operational and senior level should be in the diary. Resist the temptation to send a delegate as this sends a clear message of unimportance to the Distributor. Be there!

Access to funds. Does the Distributor have access to funds or banking facilities that allow for a reasonable level of working capital to support your business? Do your payment terms allow him to keep afloat?

Reward. Agree sensible and realistic financial rewards and fully budget for the expense. You need to ensure the Distributor is equally fair in the allocation and payment of bonuses to his own staff.

KPIs. If you do not measure then you cannot hope to improve. Agree a short list of highly relevant KPIs and monitor frequently with a simple “traffic light” colour coding.

Evaluation. If you carry out a professional evaluation of your network you will see the strengths and weaknesses but above all else you will see the opportunity.

The results? How do you know if your efforts were successful? These top 10 indications of success will help you.

If you are using Distributors to serve Traditional Trade you should read this E-Book if you want to increase profits! This really does work.