Big news from top distributors kicked off the year in blogs. WESCO lands Anixter International acquisition and Fastenal draws attention as earnings season gets underway. Follow the links below to read MDM’s most popular blogs from January.
Fastenal Quarterly Report Reinforces How Customer Dynamics are Changing
by: John Gunderson
Fastenal has closed more than 500 branches in the last six years, but the company saw e-commerce sales rise by 25% in Q4 2019 compared to Q4 2018. MDM’s John Gunderson says the distributor’s latest quarterly report is an example of how the industry is evolving to meet new customer expectations. Read More.
WESCO Still in Hunt for Anixter International
by: John Gunderson
MDM’s John Gunderson breaks down why WESCO upped its offer for Anixter yet again. The latest move is the second time in as many weeks WESCO has countered a deal first announced at the end of October with private equity firm Clayton, Dubilier & Rice (CD&R). Here’s an insider look at the potential industry impacts. Read More.
Why Distributors are Revamping Their Sales Coverage Plans
by: John Gunderson
Customers now prioritize digital channels over account manager relationships. Hear from distributors who are changing their business models to succeed in this new reality at MDM’s upcoming 4th annual Sales GPS conference in Chicago. Read More.
The Path to Distribution Growth Has Changed
by: J. Michael Marks
Today’s distributors struggle to compete, and it may be due to their own resistance to change, says Mike Marks of Indian River Consulting Group. Read More.
The Flaws in Using Gross Margin as a Business Performance Benchmark
by: Elizabeth Galentine
In a presentation at MDM’s Pricing & Profitability Summit earlier this year, Randy MacLean, president of WayPoint Analytics, questioned distributors’ broad use of gross margin as a business performance benchmark. His premise: Widespread misuse of gross margin is the most common dysfunction in wholesale distribution. “Gross margin isn’t enough to understand what’s going on,” MacLean said. Read More.
