Suddenly suppliers want to treat retailers as customers, is this something good coming out of the recession? Editor Andrew Davies asks...

There's always been an interesting use of the word 'customer' in this industry because it means different things to different people. It's always a little moment in a conversation where I as the journalist has to work out whether by 'customer' they mean 'end consumer' or 'the retailer we sell our products to'.

Customer service is usually at the top of any independent retailer's 'things we do better than multiples' list which is fair enough, but how are those retailers treated when they themselves are a customer?

The sudden downturn in business hit many suppliers and retailers hard with an almost literal credit crunch. Credit insurers, and problems with their own cash flow, forced suppliers to slash the account limits of huge numbers of retailers - often by significant amounts.

This has led to many retailers needing to expand the number of suppliers they deal with simply to maintain a certain level of supply - and therefore opening accounts and dealing with people they had little or no experience of before.

Is this one of the reasons why so many suppliers, distributors in particular, are now treating customer service as more of a priority than ever? I have spoken to one supplier after another who has said it is the most important part of their 2010 strategy with some investing millions in impressive call centres and online tracking and order systems.

At the Bathroom Manufacturers Association conference in October, a quick straw poll of delegates confirmed the same thing.

Retailers being forced to experience the service levels from more suppliers, and therefore reassessing existing ones, is one probable reason but there are others that have only been exacerbated by the recession. One is that few retailers can afford to keep any stock for themselves anymore, particularly the smaller 'mom and pop' high street independents, and so just-in-time delivery has become the principle method of operation.

This, combined with the increasing awareness of the consumer leading to plummeting patience levels, means everything needs to be where it needs to be, on time, every time, or else.

In an industry that, appliances aside, is devoid of household brands then consumer service is surely key to their purchasing decisions and that consumer isn't interested in that retailer telling them that their supplier has let them down.

So it's not an unreasonable question to ask why this kind of investment has not been as important a priority before? Tough times call for some difficult introspective admissions perhaps.

While retailers may end up with improved service from their suppliers the increased investment in technology may also mean that to get that service they are forced into embracing the 21st century and managing their own accounts online. 

Abandon the fax! Never!

What do you think? Email Andrew direct: andrew@kbbreview.com