Best Business Practices for Part Distributors Related to Price Change Management

This inquiry comes from a MRO Sourcing Commodity professional who is seeking best practices for Performance Measurables like delivery, pricing, etc. for Production-Machining Tooling spend through "Distributors."

If you have experience in establishing Service Value expectations for "Distributors," specifically regarding Price Change Management, please respond.

1. How do you set and gauge the Service Level expectations of your Distributors? Specifically, what are your expectations of Distributors related to price change management from "their" manufacturers? (Do you require the Distributor to provide input of analytics of change points related to market Intel-competitor price comparisons, raw material cost change points, etc.?)
2. In your experience, do Distributors offer some kind of "value" at the Price Change stage, and NOT just simply pass-through routine price hikes, plus their %, but truly engage in a "reasonableness check" process to validate price changes? If so, what are your expectations?
3. Do you have any type of "Scorecard" to rate and compare and contrast a Distributors performance to that of their competitors. If so, could you please provide an example?

If you wish to donate any templates or tools to this inquirer or to the SIG Resource Center, please feel free to email Mary Zampino directly at mzampino@sig.org. All templates and tools can be scrubbed by SIG and approved by you before posting.