How can manufacturers and distributors strengthen strategic partnerships as demand for direct-to-consumer business continues to rise?
As direct-to-consumer demand reshapes the market, industry leaders share how manufacturers and distributors can build stronger, more strategic partnerships that better serve today’s customer.
Nathan Andrews, President
Morse Manufacturing Company, Inc.
Syracuse, NY
As demand for direct-to-consumer engagement continues to rise, the opportunity for manufacturers and distributors is not to resist the shift, but to better define how each party contributes to delivering value to the end user.
Successful partnerships start with a unified strategy, with each party contributing a clear and critical role in the sales process. Manufacturers should remain focused on product innovation, brand development, and generating demand, while distributors continue to play a critical role in application expertise, local market knowledge, and after-sale support. Direct engagement with end users can strengthen the overall market—but only when it is transparent and aligned with the distributor channel, not in competition with it.
The next step is integration. Customers increasingly expect a seamless experience, whether they begin their journey online, with a manufacturer, or through a distributor. That requires tighter coordination—shared visibility into leads, consistent messaging, and clearly defined handoff points. When the transition between manufacturer and distributor is smooth, it reinforces trust and improves outcomes for everyone involved.
At the same time, distributors have an opportunity to elevate their position by investing in higher-value capabilities. As transactional activity becomes more digital or direct, the distributor’s differentiation will come from technical knowledge, problem solving, and service. Those who embrace this shift will become even more essential to the relationship, cementing their place as a trusted business partner for their customers.
Ultimately, the foundation remains the same—communication, transparency, and shared expectations—but the bar is higher. Manufacturers and distributors who align around a common customer experience, operate with purpose, and hold each other accountable will not only navigate the rise of direct-to-consumer business, they will strengthen the partnership because of it.
David Corey, Group VP, Motive Power Division
East Penn Manufacturing Co.
Lyon Station, PA
Communicate, Communicate, Communicate … We think it starts with clarifying the expectations of the customer needs and demands within the partnerships of servings these accounts. We have seen many of these projects start up on the wrong foot as the manufacturer and distributor were not aligned to the goals.
The Material Handling Industry is seeing more of these types of relationships happening and it needs to be a win for all three parties involved including Manufacturers, Distributors and Customers. The approach should be one of value-driven collaborations with a plan to meet the expectations.
The Customer is looking for the local expertise, service, and integrations from the Distributors that have developed a solid plan with the Manufacturers. The Manufacturers need to make sure they have laid out the plan so there are clear rules of engagement, so the experience aligns with the customers’ expectations.
Again, clarify the roles, share the data, align the KPI’s and have regular reviews to adapt to the changing climate in the marketplace.
Chuck Pascarelli, President Americas
Hyster-Yale Group
Greenville, NC
After careful reflection, I believe the answer to this question is rooted firmly in one essential element: TRUST.
Everything is predicated on trust. The only way manufacturers and distributors can strengthen partnerships in today’s tumultuous landscape is through trust. It is the foundation of all relationships, both personal and professional. Without it, alliances cannot become stronger, and by default, only become weaker and more vulnerable. As I sat and contemplated a mnemonic for the word trust, I thought I would turn to AI for some inspiration, and it delivered words that, to me, define the required elements of a strategic partnership.
Transparency – Share information, both good and bad, openly to foster clarity and create honest conversations, recognizing that working together is much more powerful than working around one another.
Reliability – Deliver consistently on what you promise, or if you cannot, honestly explain why, driving better collaboration and fostering deeper partnerships.
Unity – Build team cohesion through inclusion and accept that “doing the right thing” is always more powerful than “being right.” Ask questions and solicit feedback, knowing it will drive better outcomes.
Support – Empower others with resources and encouragement, recognizing that we are all only perfect at one thing – and that is being imperfect. Lend assistance whenever possible, knowing it will drive better alignment.
Tenacity – Stay committed through challenges, knowing that relationships and partnerships are defined more through our behaviors during difficult times than when there is perfect harmony in the universe.
In short, trust is both a multiplier and the foundation of durable partnerships, enabling better outcomes for the OEM, the Dealer Partner, and most importantly, the customer.
Mitch Smith, Chief Revenue Officer
Hytrol Conveyor Company
Jonesboro, AR
Direct to Consumer is not going away, but it does not have to come at the expense of strong manufacturer-distributor relationships. The reality is that the customer is straightforward. They want the best price and the best service. The traditional distributor model of buying, marking up, and reselling a product does not hold up in that environment. When that is the only value provided, the conversation quickly becomes about price, and that leads to a race to the bottom. The companies that will win are the ones that bring clarity to their roles, stay transparent in how they go to market, and operate with shared data instead of working in silos.
For Hytrol, this is especially important because we are 100 percent distributor driven. Our focus is not to bypass the channel, but to strengthen it. Today’s distributor needs to operate more like an integrator than a reseller. The real differentiation comes from the services wrapped around the product, including consulting, system design, integration, installation, support, and lifecycle management. Those capabilities allow our partners to compete on more than price and open up new revenue opportunities. Our role is to enable that through the right technology, better demand visibility, and solutions that help them deliver speed and consistency to the end customer.
This is not about choosing between direct to consumer and distribution. It is about building a model aligned with how customers buy today. Distributors that lead with service and capability will build stronger relationships and more sustainable growth.
