March 2010 - Modern Distribution Management

March 2010

Book Excerpt: The Trouble with ‘Best Practices’

The authors of Value Creation Strategies for Wholesaler-Distributors implore distributors to define strategy in terms of closing gaps with the market rather than operational weaknesses. Tactically driven initiatives may meet intermediate goals, but they often produce unsatisfactory business outcomes.

This is an excerpt from Value Creation Strategies for Wholesaler-Distributors reprinted with permission from the NAW Institute for Distribution Excellence. Order the book at www.naw.org/valuecreationstrateg.

Strictly speaking, best practices are business operations that are statistically correlated with superior financial performance. The study of best practices is now widespread and has contributed to significant productivity improvements by wholesaler-distributors across all lines of trade. The most comprehensive review of distribution …

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Economic Update: Weather’s Impact on Latest Indicators

Wind, rain, snow: Severe weather plagued much of the U.S. during the first months of 2010, with the East Coast bearing the brunt of the damage. And several economic indicators reflected the damage in the latest round of numbers.

"Severe weather across the coasts of the United States last month disrupted transportation schedules," said Daniel J. Meckstroth, chief economist for the Manufacturers Alliance/MAPI, commenting on the latest Federal Reserve industrial production statistics. "Production in consumer durables industries was particularly affected."

Industrial production edged …

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