Distributors that want to manage costs, become more profitable, add value to supplier and customer relationships, and remain competitive must build a better supply chain – and that begins with having the right talent in place, according to Matt Onofrio of GT Midwest, Wichita, KS, in Better Supply Chain=Improved Profitability.

“Margin pressure out there in the industry is as strong as it’s ever been, and so efficiency and having a strong, effective supply chain is becoming more and more important to us maintaining competitiveness out there in the marketplace,” says Onofrio, the industrial distributor's president and COO.

Achieving a strong and effective supply chain means hiring someone to manage the supply chain functions – preferably someone with a supply chain background who can optimize a company's flow of product and information.

GT Midwest previously had its four divisions calling the same suppliers, making too many small purchase orders without enough thought put into how the company overall was managing its inventory. Onofrio decided to unite the supply chains of those divisions under a single manager, hiring Jeremy McAsey last year.

You may want to start by looking outside the company – or even outside the industry – to fill a supply chain department’s roster, according to Wade McDaniel, vice president of supply chain solutions, Avnet Inc., Phoenix, AZ.

“The talent it takes to run supply chain now is quite different than it was 15 years ago,” he says. “It’s all about attracting the best educated. Sometimes distribution struggles with image, and even the big guys have trouble attracting and retaining talent.”

Read more about hiring supply chain talent – and improving overall supply chain functions – in Better Supply Chain=Improved Profitability.