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Study Pinpoints Importance Of Key Supplier Services Melville, NY — Kitchen/bath dealers and designers give generally passing grades to suppliers when it comes to delivering the products and services that are most important to the industry's key specifers. However, there are clearly improvements that can be made within the industry's product-supply chain, with a signifcant number of dealers and designers reporting that supplier services are worse now than they were three years ago – and even fewer reported that services are no better. That's the key conclusion of a major new survey conducted on behalf of Kitchen & Bath Design News by KBDN's exclusive new research partner, The Research Institute of Cooking & Kitchen Intelligence (RICKI). The survey, conducted online among 245 dealers and designers this spring, was aimed at identifying the importance that dealers and designers place on a wide range of supplier services (see story, Page 10; Editorial, Page 5). According to survey respondents, "excellent" or "very good" service levels are provided by 70% of the industry's suppliers, but 28% report that the service they receive from suppliers is better now than it was three years ago, and 28% say it is worse. The balance (49%) say supplier services are about the same now as three years ago. Designers and dealers were also asked how important each of 12 supplier characteristics is to them. Two attributes – prompt, reliable and complete delivery, and inquiries that are answered quickly – stood out as being "critically" important. "Looking at the percentage for characteristics rated as 'critically' or 'very' important, designers and dealers feel it is important that a supplier's pricing be both competitive and consistent, their products need to be consistently available, and supplier reps should be both knowledgeable and helpful," RICKI said. Four in fve designers and dealers feel that product warranties and having a helpful Web site are also important for suppliers, researchers added. The survey also found dealers and designers rate their suppliers overall highest for rep knowledge/helpfulness (54%) and product warranties (53%), followed closely by prompt, reliable and complete delivery (49%), and prompt response to inquiries (48%). Of the dealers and designers surveyed, 46% rate their suppliers as either "excellent" or "very good" when it comes to having product consistently available. In contrast, only about about two in fve respondents (44%) rate their suppliers highly for having a helpful Web site and comprehensive sales literature and product information. The lowest-rated supplier characteristics relate to ways that suppliers show support for respondents' business growth, including product, sales and business management training (only 23% rating suppliers excellent or very good), providing exclusive product representation in the primary market area (26%), purchasing incentives (25%), and marketing/advertising assistance (20%). Interestingly, for the four most important characteristics for a supplier – prompt, reliable and complete delivery; inquiries that are answered quickly; consistent & competitive pricing, and products consistently available – dealers and designers rate their suppliers' performance lowest. In contrast, suppliers receive high ratings for providing services like supplier rep knowledge/helpfulness and product warranties, but to designers and dealers, those services are not as important as others they want more. "Two-thirds of the dealers and designers surveyed feel that the ideal supplier is one that goes above and beyond with its service," RICKI noted. "In addition, dealers and designers are looking for suppliers who will exceed their expectations and really care about their businesses. Keeping promises seems to be even more important (than ever) in today's world." Other survey fndings include: ◦ Having products consistently available is the third most important characteristic for a supplier (tied with competitive pricing), but only one in four designers and dealers feel that the products they want are always available within a reasonable amount of time. ◦ Three in four designers and dealers feel that product pricing is more important now than it was three years ago. Pricing pressures from clients continue to create high expectations from designers and dealers for their suppliers to provide consistent and competitive pricing. As shown in the importance vs. performance gap analysis, competitive pricing is the largest opportunity gap for suppliers. ◦ While the majority of surveyed designers and dealers feel the current pace of product introductions is adequate for their needs, one in fve say they'd like manufacturers to speed up the pace of product introductions. Circle No. 9 on Product Card July 2013 ForResidentialPros.com | 13