January 12, 2009 - Modern Distribution Management

January 12, 2009

Distributor Liability and Risk: Number of Counterfeits Seized in 2008 Grows

The U.S. Customs and Border Protection (CBP) reported this week that the value of all seized counterfeit and pirated products for the year ended Sept. 30, 2008, was nearly $273 million, up 38% over 2007 – including a 43% increase in counterfeit electric products. The National Electrical Manufacturers Association (NEMA) reported the news on its Web site. Electrical products represented 8% of all seizures and ranked fifth among all product categories of counterfeit goods.
 
Footwear topped the list of counterfeit products, with handbags and apparel following. Counterfeit pharmaceuticals saw a dramatic increase in 2008 of 152% over 2007.
 
Last year I wrote a series of articles on the topic of counterfeits and private label risks; the most interesting fact I …

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Breaking Through Complacency

According to Harvard Professor John Kotter, a sense of urgency is a desire to act on critical issues now – making real progress every day on issues that are central to an organization’s success. And when an economic crisis hits (or any crisis for that matter), a sense of urgency in a business becomes all that more important if you want to come out of that crisis ahead of where you started.
 
Unfortunately, Kotter says the recession has created very little true urgency. Why?
 
He said: “People don’t understand what true urgency is. The economic situation is creating a lot of false urgency, which is this anxiety-driven, anger-driven frenzy of activity where we all run in circles figuring out what to do. It is activity-focused not …

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Conversation Over Shipping Options Doesn’t Happen Enough

Stop me if you’ve heard this one: A manufacturer, a distributor and a logistics coordinator are making a deal. The manufacturer says to the distributor, How do you want that delivered? The distributor says, “Overnight it to me on Tuesday; I need it Wednesday.” Meanwhile, the logistics coordinator mutters under his breath about how much money could have been saved by sending it LTL Monday night.
 
Sound familiar? The first part might, but what about the second? Did you know there was another option that could meet your needs and save you money?
 
For a recent article, three different players – Dan Muller of The Timken Company (the manufacturer), Doug Savage of Bearing Service Inc. (the distributor), and Don Louis of CoLinx (the …

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MAPI Report: Bleak Global Outlook

As the U.S. remains the epicenter of the global economic crisis, a shell-shocked world begins a new year with a somber outlook, according to a new report from MAPI.

In the MAPI Quarterly Forecast of U.S. Exports, Global Growth, and the Dollar: First Quarter 2009 Through Fourth Quarter 2009, economist Cliff Waldman writes that data and forecasts through the end of 2008 reveal the bleakest global outlook in the post World War II era.

The depth of the U.S. economic downturn and financial disruptions which have spread globally have created a nearly synchronized slump in industrialized country output, Waldman said. “In addition, recent data reveal an eroding picture for the emerging world, in sharp contrast to the mixed prospects that were expected …

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