The Keys to a Successful Manufacturer-Distributor Partnership
By Elsbeth Russell
ACCORDING TO MHEDA’S 2025 Material Handling Business Trends, “Strategic partnerships between manufacturers and distributors are more important than ever as demand for direct consumer business increases.”
Distributors today need to strengthen partnerships with manufacturers to access products, coordinate supply chain operations and stay competitive in the market.
These relationships — built on trust, alignment and mutual investment — help both parties navigate challenges and seize opportunities together.
Drawing insights from MHEDA’s 2025 Manufacturers Board of Advisors (MBOA), let’s explore how manufacturers and distributors can enjoy more successful partnerships.
Collaboration, Clarity and Communication are the Foundations of Success
Successful manufacturer-distributor partnerships hinge on three pillars: collaboration, clarity and communication, said Nathan Andrews, president of Morse Manufacturing Company, Inc. in Syracuse, New York.
“At the heart of this relationship is open and regular communication,” he explained.
Both manufacturers and distributors must prioritize each other as key partners, sharing updates on market trends, product developments and customer feedback in a timely and transparent manner. Regular check-ins and ongoing dialogue help ensure alignment and prevent minor issues from escalating into significant challenges.
Equally important is the establishment of clear expectations. Defining roles, responsibilities and performance metrics at the outset creates a framework for accountability and trust.
For instance, setting guidelines for order processing, lead times and service expectations fosters mutual understanding and reduces the likelihood of misunderstandings.
“Effective partnerships aren’t limited to the interactions between sales teams; they require engagement across departments,” Andrews added, explaining that touch points across multiple levels of both organizations are also critical.
Marketing, accounting and senior leadership teams should collaborate to align on strategies, streamline operations and reinforce shared goals. These cross-functional connections strengthen the partnership’s resilience and agility in responding to market demands.
Build Trust Through Transparency and Accountability
Trust is the cornerstone of any successful partnership, but it doesn’t happen overnight.
“It’s built incrementally through repeated positive interactions, reliability and integrity,” Andrews emphasized.
One way to deepen trust is by addressing challenges collaboratively. How a problem is resolved can define a relationship. A commitment to resolving issues with honesty, accountability and a focus on shared goals demonstrates that the partnership is a priority.
Transparency is equally vital. Both parties should share performance metrics openly, ensuring alignment on goals and providing a framework for productive discussions. Metrics such as sales targets, quote conversion rates and prospecting efforts create a common understanding of success and foster a spirit of collaboration.
Pete Drake, senior vice president of Operations Americas at Cascade Corporation in Fairview, Oregon underscored this point.
“Clear and open communication between each party is critical, even when the news is not positive,” Drake said. “Keeping commitments and ensuring that each party is benefiting from the relationship. Keeping in mind the long term is also critical.”
Navigate Industry Challenges
One significant hurdle that the material handling industry faces is the sheer number of relationships each party manages. Dealers often represent multiple manufacturers, while manufacturers may collaborate with hundreds of dealers.
This dynamic can dilute focus and make it difficult to maintain the necessary level of attention and support.
Additionally, evolving customer expectations pose a challenge. End users increasingly expect seamless, direct engagement akin to their experiences with brands like Amazon or Tesla. This shift creates tension in traditional models, as manufacturers must balance direct customer interactions with supporting their dealer networks.
Addressing this requires tighter integration of marketing and sales efforts to ensure a cohesive customer experience while preserving the value of the distributor.
“OEMs are working to keep their factories running, which drives erratic sales behaviors where commitments are made but not fulfilled,” explained Chuck Pascarelli, president Americas at Hyster-Yale Group in Greenville, North Carolina. “This weakens the foundation of trust.”
Consistency and reliability in commitments are essential for maintaining strong partnerships.
Ensure Consistent Communication Across Levels
Consistent communication is critical for aligning goals and maintaining trust. As Mitchell Smith, chief revenue officer at Hytrol Conveyor Company in Jonesboro, Arkansas, noted, generational differences in communication preferences can pose challenges.
To address this, Smith said Hytrol employs multiple channels, including an exclusive online portal, social media platforms, smartphone apps and traditional methods like email and phone calls.
“I believe communication will remain a challenge for years to come,” Smith said. “Generation to generation we may like to communicate in different ways.”
Andrews added that communication must occur across all organizational layers. Collaboration between marketing teams, accounting departments and senior leadership ensures a holistic approach to partnership management.
“When everyone knows what success looks like, it’s easier to collaborate effectively and course-correct when needed,” Andrews added.
Focus on Strategic Alignment and Mutual Investment
For those looking to establish or improve manufacturer-distributor relationships, strategic alignment and mutual investment are paramount. Andrews advised dealers to narrow their focus and prioritize a select group of manufacturers.
“Identify the six or so brands that align best with your market, expertise and customer needs.” Andrews said. “Dive deep into these relationships, learn their products inside and out, and prioritize them in your sales efforts.”
From the manufacturer’s perspective, clarity and selectivity are key.
“Be explicit about your expectations for your dealers, whether it’s in sales targets, training participation or marketing collaboration,” Andrews suggested. “Communicate these expectations upfront and provide the necessary support to help your dealers meet them.”
Investing time and resources in committed dealers ensures efforts are focused where they will have the greatest impact.
Smith at Hytrol echoed this sentiment, emphasizing the importance of shared values.
“Both manufacturer and integrator should truly enjoy the business and personal interactions with each other,” Smith said. “This means each company shares common values and strives to work in harmony together.”
Foster Long-Term Growth
Successful partnerships require a long-term perspective.
“Always maintain your honesty, integrity and commitment to doing the right thing. In some cases, this is not easy and may not result in short-term gains,” Drake at Cascade Corporation advised. “Work hard to listen to the other party to understand their needs and challenges. Invest the time in developing and maintaining relationships.”
Andrews also highlighted the importance of quality over quantity.
“Strong relationships are built on mutual respect, open communication and a shared commitment to success,” he said. “Dealers and manufacturers alike must view the relationship as a partnership, where both parties are willing to invest time and resources to achieve their goals.”
As the material handling industry continues to evolve, the ability to build and sustain strong manufacturer-distributor partnerships will be a key differentiator.
By focusing on collaboration, trust, communication and strategic alignment, manufacturers and distributors can create resilient relationships that drive growth and deliver exceptional customer experiences.
Article Takeaways
1. Essential Relations. Strategic partnerships between manufacturers and distributors help businesses navigate supply chain challenges and stay competitive.
2. Keys to Success. Open communication, clear expectations and defined roles strengthen collaboration and prevent misunderstandings.
3. Get Everyone Involved. Successful partnerships require engagement across multiple departments to align strategies and reinforce shared goals.
