February 25 2008 Archives - Modern Distribution Management

February 25 2008

Volume 38, Issue 4 - 02/25/2008

Volume:

38

Issue:

4

Subscribers: Log-in to read this issue of Premium.

Not a subscriber? Click here to learn more and subscribe.

Features

Here’s an overview of the scope of global counterfeit trade, as well as what a few companies in one industry -electrical goods -have been doing to protect their intellectual property and, more importantly, the health and safety of product end-users. The second article in this series, published March 10, 2008, will focus on the changing face of product liability in regard to both counterfeits and private label.


Square D, best known in the U.S. as the flagship brand for the Schneider Electric North American Operation Division, realized there might be a problem with counterfeiting of its circuit breakers when the manufacturer started seeing an increase in defective product returns.

When we would go to check the returned product, we would find out they were …

Underwriters Laboratories is a not-for-profit organization that tests and certifies products as meeting certain safety standards. UL is worldwide, and tests not only electrical products, but roofing shingles, fire products such as fire doors and fire hoses, bulletproof glass, life jackets, and any other product that may involve fire, electrical shock, mechanical or radiation hazards.

Counterfeiters not only target manufacturer brands, but also UL marks, which certify a product has met certain safety standards.

When you counterfeit a product and it carries a UL mark, then you’re impacting on the safety of the end-user,”says John Dregenberg, UL manager of consumer affairs. “Counterfeiting an extension cord that could burst into flame in the middle of the night …

With the recent report that Grainger has been accused of not complying with its contracts to supply government agencies, distributors that sell to the government should reexamine their own systems to ensure they are in full compliance with obligations under the law.

Many companies are so intent on getting government contract awards that they later forget about having to comply with the numerous obligations tucked in the contract documents. But forgetting or ignoring federal contract obligations is risky business and not recommended.

This is especially true because government agencies are growing more aggressive about auditing contracts. So all government contractors, whether new to the federal …

When one of my mentors in this industry emailed in December to say he just left his office for the last time at the company he had been with for 48 years, it struck me how much impact he has had on so many people in this industry.

I first met Roy Otto, former owner of Machine Tool Supply in Eagan, MN, 25 years ago. He has been a teacher to many people in this industry and beyond. He has been generous in sharing his knowledge and enthusiasm for the industry, and has been a strong role model for hundreds of employees, peers, suppliers and competitors.

Roy started in the warehouse of in 1959, worked hard and moved into inside and outside sales. It was natural that he ended up with an equity stake. Roy built a well-planned exit strategy, sold his business a few years …

MDM spoke with United Stationers CEO Dick Gochnauer recently about the company’s move into the industrial sector as well as the role it plays as a master distributor. In Part II of this interview, Gochnauer addresses private label, recruiting and retaining employees and data-sharing.
 
MDM: How is United Stationers preparing for a potential economic slowdown in the next year?
 
Dick Gochnauer: I have less concern over industrial, foodservice and JanSan. In the office products space, we are seeing a slowdown. We saw it starting to occur in 2007. We figured it was coming and it did. We are prepared if the economic slowdown continues in 2008. We are planning to get growth but know that it may be more challenging. The good news in the office …

Chicago-based facilities maintenance distributor Grainger responded to a complaint filed in U.S. District Court in Eastern Wisconsin alleging the distributor had overcharged the U.S. government by charging more than the agreed-upon 26-percent markup as well as illegally relabeled products manufactured in non-trade agreement countries so they could be sold to the U.S. government. Grainger is required by contract with the General Services Administration to prevent product from countries that do not have reciprocal trade agreements with the U.S. from being offered for sale to government agencies. Grainger said: The company takes this allegation seriously. Although Grainger believes the company has fully complied with its contract, it intends to carefully review the allegations to …

Modern Distribution Management’s December Inflation Index, which measures a cross-section of industrial supplies, was up 0.4% from the previous month, and up 3.28% from December 2006.
 
Summary of MDM Inflation Index for the past 12 months:

December 2007 Index 275.9
November 2007 Index 274.7
October 2007 Index 273.6
September 2007 Index 273.5
August 2007 Index 273.3
July 2007 Index 272.4
June 2007 Index 271.7
May 2007 Index 271.2
April 2007 Index 270.8
March 2007 Index 269.6
February 2007 Index 269.4
January 2007 Index 268.7
December 2006 Index 267.1

Please click below to view a print-ready pdf of the MDM Inflation Index for December 2007, listing the ten individual product categories …

This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost toward an annual subscription (within 30 days of purchase), which includes two issues a month plus access to more than six years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to …

PDF Download

Here’s an overview of the scope of global counterfeit trade, as well as what a few companies in one industry -electrical goods -have been doing to protect their intellectual property and, more importantly, the health and safety of product end-users. The second article in this series, published March 10, 2008, will focus on the changing face of product liability in regard to both counterfeits and private label.


Square D, best known in the U.S. as the flagship brand for the Schneider Electric North American Operation Division, realized there might be a problem with counterfeiting of its circuit breakers when the manufacturer started seeing an increase in defective product returns.

When we would go to check the returned product, we would find out they were …

Underwriters Laboratories is a not-for-profit organization that tests and certifies products as meeting certain safety standards. UL is worldwide, and tests not only electrical products, but roofing shingles, fire products such as fire doors and fire hoses, bulletproof glass, life jackets, and any other product that may involve fire, electrical shock, mechanical or radiation hazards.

Counterfeiters not only target manufacturer brands, but also UL marks, which certify a product has met certain safety standards.

When you counterfeit a product and it carries a UL mark, then you’re impacting on the safety of the end-user,”says John Dregenberg, UL manager of consumer affairs. “Counterfeiting an extension cord that could burst into flame in the middle of the night …

With the recent report that Grainger has been accused of not complying with its contracts to supply government agencies, distributors that sell to the government should reexamine their own systems to ensure they are in full compliance with obligations under the law.

Many companies are so intent on getting government contract awards that they later forget about having to comply with the numerous obligations tucked in the contract documents. But forgetting or ignoring federal contract obligations is risky business and not recommended.

This is especially true because government agencies are growing more aggressive about auditing contracts. So all government contractors, whether new to the federal …

When one of my mentors in this industry emailed in December to say he just left his office for the last time at the company he had been with for 48 years, it struck me how much impact he has had on so many people in this industry.

I first met Roy Otto, former owner of Machine Tool Supply in Eagan, MN, 25 years ago. He has been a teacher to many people in this industry and beyond. He has been generous in sharing his knowledge and enthusiasm for the industry, and has been a strong role model for hundreds of employees, peers, suppliers and competitors.

Roy started in the warehouse of in 1959, worked hard and moved into inside and outside sales. It was natural that he ended up with an equity stake. Roy built a well-planned exit strategy, sold his business a few years …

MDM spoke with United Stationers CEO Dick Gochnauer recently about the company’s move into the industrial sector as well as the role it plays as a master distributor. In Part II of this interview, Gochnauer addresses private label, recruiting and retaining employees and data-sharing.
 
MDM: How is United Stationers preparing for a potential economic slowdown in the next year?
 
Dick Gochnauer: I have less concern over industrial, foodservice and JanSan. In the office products space, we are seeing a slowdown. We saw it starting to occur in 2007. We figured it was coming and it did. We are prepared if the economic slowdown continues in 2008. We are planning to get growth but know that it may be more challenging. The good news in the office …

Chicago-based facilities maintenance distributor Grainger responded to a complaint filed in U.S. District Court in Eastern Wisconsin alleging the distributor had overcharged the U.S. government by charging more than the agreed-upon 26-percent markup as well as illegally relabeled products manufactured in non-trade agreement countries so they could be sold to the U.S. government. Grainger is required by contract with the General Services Administration to prevent product from countries that do not have reciprocal trade agreements with the U.S. from being offered for sale to government agencies. Grainger said: The company takes this allegation seriously. Although Grainger believes the company has fully complied with its contract, it intends to carefully review the allegations to …

Modern Distribution Management’s December Inflation Index, which measures a cross-section of industrial supplies, was up 0.4% from the previous month, and up 3.28% from December 2006.
 
Summary of MDM Inflation Index for the past 12 months:

December 2007 Index 275.9
November 2007 Index 274.7
October 2007 Index 273.6
September 2007 Index 273.5
August 2007 Index 273.3
July 2007 Index 272.4
June 2007 Index 271.7
May 2007 Index 271.2
April 2007 Index 270.8
March 2007 Index 269.6
February 2007 Index 269.4
January 2007 Index 268.7
December 2006 Index 267.1

Please click below to view a print-ready pdf of the MDM Inflation Index for December 2007, listing the ten individual product categories …

This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost toward an annual subscription (within 30 days of purchase), which includes two issues a month plus access to more than six years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to …

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!