With the best of the practices and business terms this is the partnership that facilitate distributors as well as the manufacturers to reach their organizational goalsHowever, if this business venture brings you optimized it is on the other hand holds complications if not managed carefully can lead to failure.

However, the key factor to success for both the parties remain on the same point defining whether the relationship is strategic or tactical How can one identify a strategic relationship?

A strategic ties nurtures with closer collaboration from both associations in terms of marketing, branding and product development.

A strategic ties doesn’t bound a distributor to forcefully push the product in the market but also it allows distributor to collect feedback from the supply network; including the final consumer feedback and insights, leading to product improvement and innovations along with changing demands of the consumers in the diversified markets A wholesale distributor is the key expert on understanding the consumer behavior, while the manufacturer excels designing, developing, and offering products.

In strategic alliances if the manufacturer makes efforts to introduce products into the new markets, similarly, expanding new markets and carrying new types of offerings rests with the distributor in several ways!

How a tactical alliance works?