How Advanced GPS Ag built a productive partnership with their main supplier and a nationwide distributor network
Tony Houston founded Advanced GPS Ag as New Zealand’s authorised distributor for precision agriculture products that help farmers improve yield and efficiency in crop and livestock production.
The products Advanced GPS Ag (AGA) sell are fantastic. They help farmers up their game, saving time, getting more efficient with resources, and maximising yield. So far, so excellent.
But when Tony Houston contacted me in 2019, he was exasperated. Things with his key supplier weren’t going so great. Their relationship needed to be recalibrated as a trusting partnership for Tony to run his business efficiently in the best interest of his customers.
This isn’t a unique problem. Many distributors have challenging relationships with their key supplier. And it always boils down to poor communication.
How to improve the relationship with your key supplier
I knew what Tony was going through because I’d been in his shoes. I’d worked with large corporates and could help him understand their internal demands and the info he needed to give them to grease their wheels.
The larger a corporate entity becomes, the more they tend to become focused on process at the expense of their relationships with people. This creates a can’t do culture that throws up roadblocks, rather than a can-do customer focused attitude that presents solutions.
A productive partnership with a large supplier must work two ways:
Suppliers have their own internal demands: KPIs they have to meet, processes to follow, and reports to complete. As their partner, it’s Tony’s job to make these things easier.
In return, suppliers need to understand their distributor’s needs and help them grow their business. New Zealand farmers drive his supplier’s bottom line, so it’s part of their job to support Tony to empower his dealers to solve those farmers’ problems.
AGA’s main product supplier wasn’t familiar with the New Zealand market, didn’t understand how different it is to Australia, and were struggling to come to terms with the trust required to sell through a key distributor, as this was a new model for them. Tony needed to get on the same page, fast.
First we invited them over, introduced them to the idiosyncrasies of farming here, and agreed a raft of ways we could work better together. Then we returned the visit, flying over to Australia to meet their team. These meetings transformed Tony’s relationship with them, giving them a new appreciation of his expertise, and establishing a true partnership.
Tony says, “Ian helped hugely when I was having trouble establishing a relationship with my key supplier. A lot of it was about communication. We flew over together to Australia to iron out issues, and Ian’s support and advice has helped me build a strong association with them.”
Selling through a national dealer network
When Tony took on the role of selling precision agriculture products in NZ, the task came with a nationwide network of assigned dealers. This was a new challenge for Tony and his team, who were accustomed to selling to farmers direct. Tony explains, “It was a bit of a reset for us, quite a big change, and we didn’t have the know-how and processes in place.”
Success starts with having the right people in the right places. So, we began by evaluating the existing dealer network. As part of that, we established new criteria for identifying dealers we wanted to work with and put new dealer agreements in place.
We also had to address Tony’s business culture, because his people were more comfortable dealing direct with customers. Building a strong dealer network requires a clear strategy and continuous investment. Tony appointed a new dealer manager to empower the dealers to sell smarter by giving them the right info, education, and support.
Finally, we worked on growing sales, putting sales processes in place, establishing a CRM, and providing sales coaching for the team. Their sales approach shifted from order taking with farmers to managing key strategic accounts and supporting their dealers.
Top tips for managing dealers
I’ve a few key takeaways from working with Tony to share with you if you’re establishing your own dealer network or wanting to up your dealers’ game.
Know what your dealers need to do a good job. They must understand the product they’re selling and know how it makes your customers’ lives easier.
Know your dealers’ pain points. Top dealer frustrations are not having enough product knowledge, not being able to access info they need quickly, and poor product supply.
Invest in your dealers’ sales skills. Develop a training programme for your dealers, and ensure they’re as well supported as your own internal sales team.
Build a sustainable business. Put the processes and systems in place you need to build good relationships with your dealers and know where they’re at with your sales at all times. This will help you have a strong, forecastable pipeline.
Remember, it’s your job to help your dealers grow their business. When you take on a network of dealers, you’re expanding your sales reach, but you’re also expanding your responsibilities.
Supporting business through change
Tony and I met through Business Mentors NZ. He reached out to the network because he needed support through the challenges of becoming the lead distributor for his key supplier. Tony explains “Ian’s an important part of our team. He’s a top fella, who’s easy to work with. Straight up I could see he was worth working with, and it’s good for me to have someone independent to talk to. He comes every Tuesday, and I really value the support.
“It’s been hard for our team to do things differently; people get set in their ways. But it was important for me to bring them on this journey. Some businesses would have said, you’re not performing, we need to hire someone else, but I want to stick with the people we have because they’re good people. In the last few months, we’re starting to see positive change, and I know we haven’t seen the best of it yet.”
If you need support establishing a dealer network, or improving your dealers’ performance, I’m here to help. Check out sales coaching for agribusiness, or contact me directly for a bespoke programme of business mentoring at hello@iancartwright.co.nz.