Distribution
Tailwind for Chemical Distributors
Over the next few years, the WACKER Group intends to continue growing by increasing its emphasis on sales partnerships and expanding its external distribution channels – particularly in the BRICs.
Some 15 percent of WACKER’s global sales in chemicals are now accounted for by selected distributors. “The development of tailor-made strategies – combined with our distribution partners’ above-average growth – will further increase the percentage of sales handled via this channel,” announced Dr. Jürgen Frisch, head of the Group’s Distribution Management department. In addition, the focus will fall on expanding external distribution channels in growth markets such as India, China and Brazil.
Professional Management of Distributors
The Distribution Management department’s mission is to professionally manage the distributors with whom WACKER cooperates in the marketing of its chemical products. These business partners are evaluated each year on the basis of the income they generate, as well as on several other criteria (number of marketing activities they launch, project developments, etc.), and honored accordingly with platinum, gold and silver awards. The percentage of sales made through distributors in regions where WACKER has little or no sales organization of its own is particularly high. Thus, 40 percent of chemical sales in Southeast Asia and 30 percent in South and Central America are generated through sales distributors – this compares with just 8 percent in western Europe, where WACKER has a strong sales network.
Distribution Management not only carries out marketing and sales activities, but also handles financial controlling, supply chain optimization, product training and analyses of competitors. WACKER currently works with about 250 distributors – including Brenntag and IMCD, two globally active chemical wholesalers. In fact, these two alone account for over a quarter of the revenues WACKER achieves through distributors.
