Defining and Evaluating Services II

On a strategic level, services can, in some instance, position a distributor as a direct competitor to its suppliers.

In the continued focus on defining and evaluating the value of their services distributors should also consider:

• Outside Sources - Services-based capabilities do not always have to come from inside the company.  Leading distributors have learned the benefits of partnership and collaboration and how those capabilities can pay off over both the short and long terms. (In the case of large distributors, the ability to quickly leverage scale and scope enables them to more quickly develop and market cost-efficient, high-value services.)
• Channel conflicts - On a strategic level, services can, in some instance, position a distributor as a direct competitor to its suppliers.  Although this is not necessarily a negative situation, the implications of new services offerings that may affect key partners should be carefully considered, and perhaps even discussed with them.

ACTION POINT: Consider the value of outside resources and channel partners when developing service offerings.