Martin Supply President and ISA Chairman David Ruggles stops by to discuss digital initiatives from both his company and the association, as well as progress the greater industrial distribution sector has made on that front.
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Digital transformation is no longer something to get to eventually. It’s an imperative for survival.
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The 2019 revenue statistics in MDM’s 2020 Market Leaders top distributors lists are going to serve as an important benchmark while wholesale distribution recovers from COVID-19.
Distributors are making advances in areas that have long been on the to-do list, such as improved technology adoption, better communication and more streamlined operations
Distributors are making advances in areas that have long been on the to-do list, such as improved technology adoption, better communication and more streamlined operations
Remember those first-generation efforts in standardized numbering, bar-coding and other ways to automate through technology or process improvement? Remember the quality movement?
For those engaged in independent distribution channels 20 years ago, there was much discussion about how the channel had to tighten up to remain a viable part of the supply chain. Too many redundant activities were taking place at the manufacturer and distributor levels, and customers would migrate to more cost-effective supply sources if their current suppliers did not find ways to be more competitive. Oh, and distributor margins were going to have to squeeze to pay for this improvement.
It’s more than ironic that at a time when the economy is choking on high unemployment, many distributors are finding it hard to find good talent. It’s a warning sign you can’t ignore. How good do you want your company to be through all this turbulence? Pretty good? Great? The best?
You need engaged team members scrambling just as hard as you to find the right answers to deal with the upheaval right now. In most cases it’s not the same skills as five years ago.
What’s the right balance of time spent on analyzing data and just using your intuition?
Dealing with the details now can make a big difference in recovery later.
Your customers are getting more messages than ever from your competitors – in person, online, email and even television.
The release of our first annual MDM Market Leaders and Distribution Landscape Report last week was the result of several months of research. Throughout, we noticed some recurring themes. Last year changed every distribution company’s paradigms, which historically have been about size and sales revenue growth. Anecdotally, very few distributors grew revenues last year.
I’ve been to more than a dozen industry events over the past few months – association annual events, technology summits, marketing group meetings. It’s great to see some momentum starting to build that’s great to see. There are also some common threads in the conversations taking place at these events. In one form or another, every distributor is rethinking the right model for 2010 and beyond – one that’s leaner, more productive, but built on the strengths, values and relationships that built a successful company in the first place.
I’ve been using a saying attributed to Warren Buffet this spring in presentations to groups about current markets: “It’s only when the tide goes out that you learn who’s been swimming naked.” At this point, the more appropriate saying might be: “You can drown when the tide rises above your head.” The Ch. 11 bankruptcy protection filing by Alamo Iron Works on April 5 was triggered by what the company alleges was non-payment of $1 million for work by a large customer.
This is not likely to be an isolated incident. Increased sales are great, but I’m hearing about difficulties with supplier lead times, financing inventory and cash flow.
MDM lost a long-time contributor and friend last fall. Bill Hodgdon, a consultant with a strong manufacturing operations and marketing background, died from complications with cancer. Over 18 years, Bill wrote many articles for MDM and spoke for many distribution associations. He consulted with international manufacturers who sold through distribution and helped them with channel strategy and tactics. Bill had a unique perspective.
