Distributorship: How supplier culture can contribute to reseller success

Stability, continuity, predictability – these are the three pillars of every successful partnership.

In the distribution channel, smart value-added resellers rightly look for these qualities in the vendors they work with. Because how can they put them at the heart of their own offering if they are absent from the wholesale relationship on which they themselves depend?

Of course, assessing their presence can be a subjective matter. Does stability mean tried and tested? Does continuity mean that there is a roadmap but a lack of disruptive ambition? And is predictability about a reliable but unexciting future?

Fortunately, there is a lens through which outsiders can gain a well-rounded impression of a potential partner: culture.

Much more than product functionality, reliability or price, culture – especially in relation to its own employees – can be a meaningful indicator of the other, equally valuable characteristics of a company: its values.

In short, a provider that puts its own people first is likely to bring a high level of reciprocity, understanding and support to its relationships with its partners. And when that happens, it often means success for all parties.

“Business is ultimately about people – when employees feel valued and part of a team, it creates a culture and atmosphere in the workplace that can have extremely positive impacts,” he says Stephen Glaister, Channel Development Manager at leading UK hosted telephony provider NTAwhich recently announced that it has become an Employee Ownership Trust (EOT); This allows existing and future employees to become shareholders in the company, receive annual bonuses and benefit from future sales.

“It promotes the feeling that we are all in this together; We strive for the same common goal and know that we will only be successful as a group if each of us makes a positive contribution. I think our distribution partners have always known that we are a provider that offers something special, but now I am sure they will feel that even more strongly.”

EOTs – the biggest example of which is giant retailer John Lewis – were created by the UK Finance Act 2014 to encourage more companies to become employee-owned. In the case of NTA, the EOT was founded by majority shareholders Paul White and Charlotte French, who founded the company in 2001 and remain at the helm. Future profits will be used to purchase additional shares in the trust, which will be used to fund bonus payments to employees and will be shared in the event of a future sale of the business. The existing management team and all existing employees will remain in office and day-to-day business operations will remain unaffected.

“It is an extremely positive message to our sales partners,” says Glaister.

“If they didn’t already know, they can be confident that they are in a relationship with a company that makes long-term, informed decisions. Becoming an EOT demonstrates stability, continuity and predictability.”

“Everyday life is as usual,” he says Cliff Chandler, NTA Sales Manager. “The same brilliant people are still here to innovate, serve and support our partners and their end customers, but technically they now own the company. This affirms each and every one of us in an incredibly powerful way. I am convinced that this will give us all a completely different attitude to our work and that this will increase our collective performance. I have no doubt that this increased energy and enthusiasm will impact our partner relationships and, in turn, their customer relationships will benefit as well.”

In fact, recent research by the Employee Ownership Trust Association, which provides advice and support to EOTs as members, has shown that employee-owned businesses benefit from an 8 to 12% increase in productivity.

Add that to the mix and it becomes clear how EOT reseller partners can also benefit.

To learn more about how NTA can help your and your customers’ businesses adopt, adapt and improve, visit the website.