Swagelok, a $1.8 billion company with 20 manufacturing facilities around the world operates under the “One Swagelok” business model which includes an exclusive relationship with it’s distributors – authorized sales and service centers.
In this episode I talk with Rod Fallow, President of Swagelok Northern California about this unique model. The exclusivity at first sounds constraining. Most distributor’s business models are a mile wide – carrying as many lines as possible, and an inch deep – providing limited expertise across all those lines.
The uniqueness of the exclusive relationship Swagelok has with it’s distributors, allows for deep expertise through a business model that is an inch wide and a mile deep.
Innovation – leading customers to a better future for which they are capable of rewarding you – can and does thrive with this model because in many cases as Rod describes: “We know the customer and their needs better than the customer does themselves.
In this 39 minute episode Rod and I discuss:
- The threat of disintermediation
- Is distribution as we know it dead?
- The criticality in defining the value you deliver
- Swagelok’s VIP program of documenting and quantifying value delivered to the customer
- Why the term “distributor” doesn’t fit this distribution company
- The unique business model between Swagelok the manufacturer and its 80 sales and service centers around the world
- The evolution of Swagelok Northern California’s business model
- The evolution of the sales team to match the evolved business model
- The changing definition of relationship
- The power of being constrained
The Show Notes
- Meet Rod Fallow
- Swagelok Norther California
- INNOVATE! How Successful Distributors Lead Change In Disruptive Times
- Dirk Beveridge Speaking
- UnleashWD Innovation Summit
Other Episodes In The 5 Part Rod Fallow Podcast Series
- Episode 1 – How To Become Your Customers Favorite Story
- Episode 2 – Locking Down Company Culture
- Episode 3 – Developing Value Through An Ecosystem of Deep Expertise
- Episode 5 – Transformative Leadership
Links will be provided with each episode broadcast.
Members of the free UnleashWD Online community have access to this transcript.
Not A Member? Claim Your Free Membership Here