Circuits Assembly - August 2008 - (Page 20)

Better Manufacturing The Underappreciated Manufacturers’ Rep Be kind to the rep. They are vital to the chain. hile I usually discuss SMT processes, equipment and materials in this space, every now and then it is important to take note of the human aspect. One of the most overlooked and, in many cases, underappreciated personnel is the manufacturers’ representative. If you’ve ever been in a position where you were responsible for procuring equipment, tools or materials for a process line, you have no doubt dealt with one or several manufacturers’ representatives. A manufacturer may elect one of several ways to sell their product in a particular region. Larger companies, for instance, may employ a direct sales force, in which their employee calls on buyers. More common in our niche, however, is the manufacturers’ rep. Within this approach, the principal may have national and regional (and sometimes, district) sales managers, but the actual “street feet” are part of a third-party sales organization, aka a “rep.” The rep is the person with whom you communicate through most of the sale. In most arrangements in North America, the manufacturers’ rep does not take possession of the equipment being sold and is therefore, not a legal agent of the manufacturer. Also, in North America, service typically is provided directly by the factory’s organization, seldom through the rep. Outside North America, manufacturers’ reps typically take possession of the equipment and re-sell it to the end-user and also provide most of the service in their territories. As mentioned, some equipment and materials manufacturers have their own direct sales forces. Their salesmen are employees of the respective company, responsible for selling only the products manufactured by their division. Other companies you may have worked with, including ACE, AIM, Autosplice, Cookson/Alpha Metals, DEK, ECD, Europlacer, Fuji, Heller, Indium, Juki, Kester, KIC, Mydata, Panasonic, RMD, Siemens, Speedline Technologies, Vitronics-Soltec and many others rely on third-party rep organizations to handle customers in the field. These rep firms are independent organizations that carry a number of lines. For each manufacturer represented, they report up to a regional sales manager of that supplier. The firms earn commissions from the sale of equipment and materials. Manufacturers’ reps themselves may once have worked in sales or marketing at a manufacturer, perhaps in a management position. Others may have come from manufacturing or process engineering positions in our industry. Others may be starting their careers in sales, while some reps I know seem to have spent a lifetime in their roles. Circuits Assembly AUGUST 2008 W Phil Zarrow is president and a principal consultant at ITM Consulting (itmconsulting. org); phil_zarrow@ itmconsulting.org. Not only do most customers not understand the role of the manufacturers’ rep, it has been my observation that most of the principals (the equipment and materials manufacturers they represent) have no idea what “it’s all about.” In my consulting practice, my work includes helping firms maximize sales and marketing efforts, which includes relationships with sales organizations. As someone with experience both as a rep and, at various OEMs as a rep manager, allow me to attempt to set the record straight. One big misconception is a rep’s “devotion” to each line. For example, a rep firm typically may have six to 15 product lines (from different manufacturers), some more, some less. However, if a rep has, let’s say, 10 lines, don’t think for a moment they devote 10% of their time and effort to each one. To the contrary, there are one or two – three at most – lines that get as much as 80% of their effort. Most of the other lines are along for the ride. And there is usually a line or two that just takes up ink on the line card. What does it take for a principal (i.e., represented manufacturer) to become a Most Valued Principal (MVP) and gain a large portion of the rep’s attention? Having been there, done that, as well as owned that (slightly torn) t-shirt, I postulate it comes down to the following: support, reputation and money. I will elaborate. Support. The manufacturer’s sales and marketing people have to put forth effort in the rep’s direction. Sitting back and waiting for the orders to pour in doesn’t quite cut it. A top-tier manufacturer will have good, descriptive and accurate literature – brochures, data sheets, and specification sheets in copious quantities – available to the rep. Supplying the rep with strong sales tools goes a long way as well. Videos (“sales demonstrations in a can”), presentations and professional cost-justification studies make a big difference. But sales and marketing support goes beyond paper and tape. Having a strong organization at the factory available to both rep and customer is extremely important. The third-party rep cannot be expected to be a technical whiz on every product line they carry (although some may pleasantly surprise you) and having accessible technical and applications support makes a big difference. Such support comes in both personal as well as remote (telephone) mode. Sales managers and product managers who travel in the field with the reps go a long way toward differentiating competitors from one another. What happens when a board is sent back to the factory for applications examination or related work? Is it turned around promptly or does it sit there for weeks (or months)? How about when the potential client comes in for a demo? Many sales have circuitsassembly.com 20 http://www.itmconsulting.org http://www.itmconsulting.org http://circuitsassembly.com

Table of Contents Feed for the Digital Edition of Circuits Assembly - August 2008

Circuits Assembly - August 2008 Contents Caveat Lector Industry News Market Watch Talking Heads Screen Printing Better Manufacturing Auditing a Fabricatior Cutting Machine Programming Time Simultaneous Acoustic Imaging and Surface Mapping Tech Tips Soldering Test and Inspection Process Doctor Pb-Free Lessons Learned Getting Lean Component Advances Product Spotlight Ad Index Assembly Insider Techincal Abstracts

Circuits Assembly - August 2008

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