Tom Gale, Author at Modern Distribution Management - Page 6 of 29
Posts By Tom Gale

This is the 10th year we have ranked the top distributors, and this year includes more than 150 companies across 15 product categories. While it’s easy to focus on the explosive growth of Amazon Business, MDM's Tom Gale believes the more important trend beyond the continued expansion strategies — by product, territory and customer segments, largely through digital platforms — is how market leaders are strategically translating digital disruption into digital transformation.

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If firms ignore the profit opportunities in the existing business, they are severely limiting their ability to take part in the new distribution future. No one can hit you over the head with common sense in such a nice way as distribution profitability expert Dr. Al Bates. In his article in this issue, he stresses that management needs to do a better job getting the team aligned around the existing opportunities to improve profitability basic blocking and tackling.

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Theres a meme bouncing around the internet thats attributed to a Walmart banner that hung at its headquarters many years ago. It read something like this: You cant out-Amazon Amazon. Great advice! But if you build a strategy and leaner model from your core strengths, you can out-compete any type of competitor.

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Just as important as technology and perhaps more so for distributors are building the right business processes and organizational structures to make sure you are creating the best value for your customers. Thats the core emerging theme of our Digital Distributor Summit in June, and why we felt so strongly about the timing for this event.

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This Munich-based, third-generation distributor of bearings, power transmission, fluid power and tooling products took a non-traditional approach to transforming into a digital distribution business. It started by digitizing and strengthening the automation capabilities of its back-end systems purchasing, inventory management, logistics before focusing on the sales side of the business. And it accomplished this transformation by developing its internal technology and development expertise, thus being able to customize and enhance ERP and other critical platforms. One of MDMs 2019 Digital Innovator Award winners, heres Ludwig Meisters story on how the distributor has built a culture of digital innovation.

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Not surprisingly, our quarterly Baird cover story confirms both leading indicators as well as what were hearing anecdotally from distribution executives. The first quarter showed signs of weakness compared to the previous quarter for most distributors, but still good growth overall, and a continued optimistic outlook.

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