Tom Gale, Author at Modern Distribution Management - Page 17 of 28

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Tom Gale

Tom Gale has been an MDM researcher and industry analyst for 30+ years on independent distribution channel trends, consolidation, technology and competitive landscape. He is a frequent speaker and moderator on these topics at company, marketing group and association meetings in North America and Europe.
Posts By Tom Gale
Companies
Commentary: Beware the Amazon Mystique

Every marketer in industrial and commercial markets should pay close attention to what Amazon is doing. But don’t let them drive your strategy. Don’t give them the keys to your strategy; don’t even let them near your strategy. They have the resources to do well enough on their own without your help. And yet, that is exactly what is happening on a widespread basis today.

If you sell through an Amazon Webstore platform, as many distributors do, you are providing …

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Management
Commentary: This Year, Talent is the Biggest Differentiator

So far 2013 has been somewhat turbulent. M&A activity has continued (MSC’s planned acquisition of Barnes, for example), as does overall economic/market uncertainty. It provides distribution executives with some choices to make about priorities and where to invest in initiatives that will produce the best return in 2013.

That’s the fancy way of posing the question: “How do we protect the revenue we have, and where are we going to…

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Management
Commentary: The Puck Stops Here

I’ve been a hockey fan since the 1960s. But someone has to say it: Stop paying attention to Wayne Gretzky’s advice about skating to where the puck will be. It’s been beaten to death countless times by consultants and motivational speakers.

For a long time, it worked well to follow the Great One’s advice. Good distribution companies played where the puck was – they executed well in established markets. Great distribution companies could see where the puck was going – they dedicated resources to find and monetize emerging growth opportunities.

Growth is harder to come by today; market …

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Finance
Commentary: Fragmented Markets Bring Opportunity in 2013

As I begin my 21st year with Modern Distribution Management, I’m struck by the continued degree of fragmentation in wholesale distribution. That may run counter to conventional wisdom as we have entered another strong cycle of consolidation and M&A activity.

But it only takes a brief review of MDM’s Top 40 Industrial Distributors Market Leaders list to realize how diverse

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Research & Analytics
Commentary: Adapting for 2013

As we approach the end of the fourth quarter, it is useful to review the year and think through scenarios for next year.

The first half saw manufacturing markets strong with some recent tapering or at least increased month-to-month volatility. Construction markets have been gaining momentum through the year. Specific energy markets continue to skyrocket.

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Research & Analytics
Commentary: Changing Definitions of Value in 2013

This is the time of year when projections for the year ahead are made, plans solidified and (sometimes) fingers crossed. This has been a strong year of growth for our company, and I thank you for your business. It is a key indicator that through good planning and hard work by our team, we have been meeting some ongoing and emerging market needs.

Through an annual strategic planning process, we have built a framework to gain feedback from our customers and the industry we serve. Next month, we’ll publish our …

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Economic Trends
Commentary: The Ongoing Strength of U.S. Manufacturing

“U.S. manufacturing has never been stronger.”

That’s a comment from an article in the Nov. 4 edition of The New York Times Magazine. The piece is a combination essay/photo survey of the corridor between Washington, D.C. and New York City. In it they featured what you see riding the train between the two cities and how it provides a true picture of the U.S. economy.

Citing the United Nations Statistics Division, the article says that the dollar value of goods made in America is at an all-time …

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Sales & Marketing
Commentary: The Power of Segmentation

The wholesale distribution industry is about to experience a smack-down wrestling match with big data, and in many cases, big data is going to win. Why? Through no particular fault of any management role or responsibility within an organization, many companies don’t have a data management policy. That means there may be multiple records of customer bill-to and ship-to with dirty data – which may be as simple …

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Sales & Marketing
Commentary: Cost of Goods Not Sold

 

Al Bates, president of Profit Planning Group, is arguably the preeminent expert on profitability in wholesale distribution companies. For decades his company has performed annual statistical programs, profitability studies and industry benchmarking for many associations (PAR reports) and companies.

He coined a phrase a few years back that seems especially appropriate in the erratic economy we are in today – the cost of goods not sold.

It’s a great term that describes so well the core growth issues every distributor faces now. Some months are great, others are flat. Even in the sectors where growth has been strong, most don’t … 

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Management
Commentary: Stop Looking Backwards

The national media seems determined to make a return to recession an Olympic event. But let’s not give them the gold yet. Industrial markets have slowed, but there are still many niche areas of strength, and many distributors are reporting record-setting years. Financials of public distributors for the second quarter include high single-digit and double-digit growth. On a more macro basis, most expectations are for …

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Finance
Commentary: M&A Markets for Industrial Distribution Strengthen

Merger and acquisition activity in wholesale distribution has rebounded strongly from the 2008-2009 meltdown of financial markets and recession, based on the data and perspectives of our panelists in MDM’s industry M&A update webcast at the end of June. In spite of signs of economic turbulence in the second quarter, overall conditions are favorable for strong M&A activity through 2012.

There may be increased consolidation activity, but we still have a highly fragmented and competitive balance between…

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Economic Trends
Commentary: The Difference in 2012: Profitability

The economy in 2012 is proving to be consistently inconsistent. Anecdotally, we’re hearing of record-breaking months followed by slow ones; nearly all distribution sectors expect less in 2012, but still a year of moderate growth.

As Wurth-North America’s CEO Robert Stolz says in this issue of MDM: “It’s very difficult still to plan or to set prognosis because we’ll have a couple of good quarters and then we’ll have a month that’s not as strong.”

Making the most of more limited growth opportunities will …

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Economic Trends
Commentary: Data Confirm What Distributors Know: 2011 Was a Good Year

Last week we released our 2012 Wholesale Distribution Economic Factbook. This comprehensive report on the U.S. wholesale distribution industry provides detailed 2011 and 2012 economic data for 19 wholesale distribution sectors. Overall, the news was good: The strong rebound of 2010 continued in 2011, though at a slightly slower pace.

Here are a few highlights:

Once again, the wholesale distribution industry …

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Sales & Marketing
Commentary: Make Disruptive Technology Work for You

I’m a history buff. The Sears Roebuck and Co. catalog from 1900 looks a little like a cartoon today, but it holds an important lesson for distribution in 2012. On the cover is a picture of a globe, a cornucopia horn with products spilling out, a banner proclaiming to be the “cheapest supply house on earth,” and two sentences with a very important message that goes like this:

THIS BOOK… tells just what your storekeeper at home pays for everything he buys and will prevent him from overcharging you on anything you buy from him.

I thought about that Sears catalog as I mulled over the impact of Amazon’s launch …

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