The powersports industry, where aftermarket products have traditionally gone through a two-step distribution process, have been particularly hard hit in the recent economic downturn, forcing many dealers and manufacturers to significantly reduce their margins. Now there is an alternative to the two-step distribution process as D2M seeks to help the retail dealers and manufacturers work more closely and easily together.
D2M (which stands for Direct 2 Manufacturer) says it is not a distributor. They don’t buy and resell products as is common in two step distribution. Instead, D2M is a service provider working directly with the manufacturers to give them the ability to sell directly to dealers — quickly, efficiently and effectively. “D2M has manufacturer’s reps visiting dealers nationwide to make it very easy for dealers and manufacturers to do business with each other,” explains Tim Pritchard, company co-founder and powersports industry pro. “Several manufacturers have tried to sell their products directly to dealers in the past. While some have certainly had success, the challenges with costs, service levels, and scalability, have made most attempts either unsuccessful or less successful than what the distributors currently provide.”
Pritchard heads a group of powersports industry veterans who felt the time was right to improve efficiencies in the industry’s supply chain by helping manufacturers sell their products directly to dealers.
Josh Whitaker, a partner and head of marketing for D2M said, “We looked at many other industries around the U.S. and identified solutions to help vendors, manufacturers and dealers connect. We studied some of the best ideas concerning traditional and modern distribution, blended our industry specific needs, and connected it with the latest technologies to create a unique program to take the powersports industry into the future."
Pritchard adds, “With many other industries adopting a more efficient, cost-effective, direct supply chain, powersports dealers and manufacturers are being left behind and have had a tough time remaining profitable and competitive in the current economic climate.”
Del Munoz, company co-founder adds,“D2M’s primary goal is helping the industry’s long term success. We all know the dealers and manufacturers are the life blood of the industry, by streamlining business practices that help efficiencies which include less costs, more margins, and shorten the production time line, we’re confident that dealers, manufacturers, and the industry as a whole, will be more successful. D2M will only work with manufacturers and dealers, we will not sell consumer direct.”
Munoz and Pritchard’s model focuses on improving and consolidating the supply chain with the tools and service that enable manufacturers and dealers to easily do business with each other.
D2M has partnered with several quality brands within the powersports industry, to be announced in the upcoming months, leading up to an official launch at the Dealer Expo in Indy.
D2M is now accepting resumes for sales reps nationwide and will have some manufacturers reps in the field in January. If you are a manufacturer or industry professional interested in learning more about D2M, please e-mail [email protected].
