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Posted November 8, 2018

Vendor Monies Across the Supply Chain

Industrial Supply, Channel Marketing Group, Benfield Consulting

Scott BenfieldVendor, or manufacturer, monies that support distributor growth is a decades-old subject. Vendors have long supported distribution with funds that include volume rebates, marketing development funds, and co-op (dollar for dollar) funds. In the last decade or so, Special Pricing Allowances, or SPAs, have appeared that are widely used across industry verticals.

Our interest in the subject of vendor monies arose because there has been little, if any, critical research and review of funds in wholesale distribution. There is limited critical, comparative measure of these funds across distributors and little review of best practice. Much of fund performance, best practice, and effective usage is limited to casual conversations about them at distributor management venues. Metaphorically, these funds are like coffee at breakfast, expected to be there, expected to be palatable, and with a handful of options for their consumption.

Download this white paper by Scott Benfield of Benfield Consulting that is based on a research project conducted by Benfield Consulting, Channel Marketing Group and Industrial Supply magazine.


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