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This jam-packed issue includes nine articles that span Ferguson’s diversification and private brand strategy; QXO’s acquisition plans; research on labor trends; Fastenal’s AI tools; and much more.

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Find a wealth of data and analysis extracted from the 2Q24 Baird-MDM Industrial Distribution Survey, including trending charts and figures for revenue and expectations, plus plenty of interesting commentary.
See our Premium M&A articles from April-June 2024, including Sonepar’s acquisition journey; how dealmaking impacts MDM’s Top Distributors feature; and the latest EBITDA trading multiples.
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This report examines Fastenal’s strategic pivots over the past ten years – digital, self-service, product mix, sales specialization and more – that have created one of the highest performing North American distributors as measured across most financial benchmarks.
Distributor e-commerce reached a remarkable tipping point in 2017: The percentage of distributors deriving more than a tenth of total revenues from e-commerce grew from 34 to 41 percent. In this article, we explore additional findings around the channels distributors use to drive e-commerce demand as well as their satisfaction with the returns on their e-commerce investments.

This article includes:

  • Stronger Marketing Effectiveness
  • Spending Rank by Marketing Vehicle
  • Satisfaction with E-Commerce Investments

Subscribers should log in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • MDM-Baird Distribution Survey: Storms Stunt Distributor Growth
  • Distributors Up Search Marketing Efforts
  • Amazon Business: The Burning E-Platform
Truck drivers are a hot commodity in an industry suffering from an operator shortage. New technologies offered by companies like Uber Freight and Tesla may be just the thing to not only lure the next generation to the profession, but ultimately make driving a big rig close to autonomous.

This article includes:

  • The Next Generation of Driver
  • The Trucks of the Future
  • Safety in Automation

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Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • MDM-Baird Distribution Survey: Storms Stunt Distributor Growth
  • Distributors Up Search Marketing Efforts
  • Amazon Business: The Burning E-Platform
In the prior two articles of this series, we explored the pitfalls of bad branding and damage branding agencies can do. We outlined the Branding Matrix and how you can use it to understand how much time and money to focus on developing your branding strategy. For the final article in this series, lets talk about the branding strategy itself how should you develop your slogan and your supporting messages?

This article includes:

  • The Branding Process
  • The Branding Ladder
  • Defining the Role of Branding in Your Company

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Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • MDM-Baird Distribution Survey: Storms Stunt Distributor Growth
  • Distributors Up Search Marketing Efforts
  • Amazon Business: The Burning E-Platform
A remarkable tipping point took place in 2017distributor e-commerce as a percentage of revenues shifted significantly, based on the seventh annual MDM distribution e-commerce survey conducted with Real Results Marketing.

This article includes:

  • Key Trends
  • B2B e-commerce forecast
  • E-commerce priorities

Subscribers should log in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • MDM-Baird Distribution Survey: Storms Stunt Distributor Growth
  • Distributors Up Search Marketing Efforts
  • Amazon Business: The Burning E-Platform

Modern Distribution Management's monthly Industrial Inflation Index measures a cross-section of industrial supplies.

This index includes:

  • Abrasives Products
  • Cutting Tools
  • Power Transmission Equipment
  • Fasteners
  • Valves, etc.
  • Power Tools
  • Material Handling Equipment
  • Belting
  • Hand Tools
  • Misc. Metal

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • Distribution M&A Playbook, pt. 3: Integration Best Practices
  • Grainger’s Pricing Initiative, pt 2: The Quest for Optimization
  • Commentary: Harvey’s Stark Reminder on Disaster Planning

In part one of this three-part series, MDM President and COO Ian Heller explored the dangers of working with a pure branding agency and how the wrong partner can do more harm than good for a distributor. In part two, Ian uncovers how you determine the value of branding for your distribution company.

This article includes:

  • Sizing the purchase
  • Emotional attachments
  • The Branding Matrix

Subscribers should log in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • MDM-Baird Distribution Survey: Storms Stunt Distributor Growth
  • Distributors Up Search Marketing Efforts
  • Amazon Business: The Burning E-Platform

On mdm.com, we not only feature our premium content that you read in this newsletter twice a month, we also feature ongoing blogs with insights from thought leaders in the industry, breaking news and extra features such as video interviews and Premium Extra bonuses. Here are some of insights you might have missed in the past month.

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  • The State of Analytics in Distribution: 2014
  • The Shifting Competitive Landscape in Distribution
  • Redefining Competitive Advantage

Sales and inventories data for wholesaler-distributors in February 2014.

This article includes:

  • Wholesale trade revenues for durable and nondurable goods in February 2014
  • Monthly inventories/sales ratio for the industry
  • Sales & inventory trends for durable and nondurable goods

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following articles:

  • 1Q14 MDM-Baird Distribution Survey Results
  • 1Q14 MDM Pricing Trends Report
  • Building on Already Profitable Business

Modern Distribution Management's monthly Industrial Inflation Index measures a cross-section of industrial supplies.

This index includes:

  • Abrasives Products
  • Cutting Tools
  • Power Transmission Equipment
  • Fasteners
  • Valves, etc.
  • Power Tools
  • Material Handling Equipment
  • Belting
  • Hand Tools
  • Misc. Metal

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • MDM 1Q14 Pricing Trends Report
  • MDM Interview with Guy Blissett: Uncertainty + Change = Opportunity?
  • The State of Analytics in Distribution
data-on-gray-background

In this two-page report, available to download in PDF after log-in, we feature data on merger and acquisition trends and financial metrics for the largest publicly traded distributors across diverse sectors in the first quarter of 2014.

In partnership with Houlihan Lokey, an investment banking firm, we have added data on M&A activity trends across all industries (not just distribution), as well as valuation multiples for deals in all industries.

shopkey-small

The third annual MDM distribution e-commerce survey conducted with Real Results Marketing revealed several key trends:

  • E-commerce revenue as a percent of overall revenue is rising relative to last year’s survey.
  • The primary objectives among distributors for e-commerce remain acquiring new customers, growing wallet share with existing customers and improving website usability.
  • Mobile deployments are growing rapidly.

This article examines the results of the 2014 State of E-Commerce in Distribution Survey and how the industry’s e-commerce offerings are maturing. Part 2 will look at best practices for distributor e-commerce marketing, data management and operations.

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Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • Strategies for Private Label Success
  • Special Report: The Industrial Vending Boom
  • Behind Grainger's E-Commerce Strategy

Some buying and marketing groups and distributor cooperatives have developed private brands to help members compete more effectively in a competitive landscape that includes more aggressive private brand marketing among larger distributors.

This is the final article in MDM’s series on private label in wholesale distribution. This article includes three groups and their approach to private label:

  • National Distribution & Contracting Inc. (Heath care)
  • IDC-USA (Industrial/Power Transmission)
  • Pro-Link (Janitorial supplies)

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more.

Or purchase this report in the MDM Store.

Subscribers also have access to the following related articles:

  • The Drivers of Private Label in Distribution
  • Strategies for Private Label Success
  • Private Label & Channel Conflict

Many master distributors – also known as wholesalers or redistributors in some sectors – offer a private label alongside national brands in their portfolios.  This article provides a snapshot of master distributors that offer private brands.

This is a sidebar to the recent article on buying & marketing groups and cooperatives that offer their own brands for their members. To read the full series from MDM on private label in wholesale distribution, click here.

Not a subscriber? Purchase the full Private Label in Wholesale Distribution report in the MDM Store.

Modern Distribution Management's monthly Industrial Inflation Index measures a cross-section of industrial supplies.

This index includes:

  • Abrasives Products
  • Cutting Tools
  • Power Transmission Equipment
  • Fasteners
  • Valves, etc.
  • Power Tools
  • Material Handling Equipment
  • Belting
  • Hand Tools
  • Misc. Metal

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • MDM 4Q13 & Annual Pricing Trends Report
  • MDM Interview with Guy Blissett: Uncertainty + Change = Opportunity?
  • The State of Analytics in Distribution

Sales and inventories data for wholesaler-distributors in January 2014.

This article includes:

  • Wholesale trade revenues for durable and nondurable goods in January 2014
  • Monthly inventories/sales ratio for the industry
  • Sales & inventory trends for durable and nondurable goods

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following articles:

  • 4Q13 MDM-Baird Distribution Survey Results
  • 4Q13 and Annual MDM Pricing Trends Report
  • Building on Already Profitable Business
Changing-Channels

While the margin and branding benefits of selling private label products may be attractive to distributors, such a move can create tension in the channel. This article examines the potential challenges and how distributors and manufacturers may be able to mitigate them.

This is the third in a series of articles from MDM on private label in the wholesale distribution industry.

This article includes:

  • Drivers of conflict between manufacturers and distributors
  • How distributors balance private label and national brands
  • Why some manufacturers offer contract manufacturing for private label and others avoid it

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more.

Or purchase this report in the MDM Store.

Subscribers also have access to the following related articles:

  • The Drivers of Private Label in Distribution
  • Strategies for Private Label Success
  • Special Report: The Industrial Vending Boom

While the Berkshire Hathaway Chairman's annual letter is written for the company's stockholders, leaders from any business can gain insight from Warren Buffett's wise words.

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • The State of Analytics in Distribution: 2014
  • The Shifting Competitive Landscape in Distribution
  • Redefining Competitive Advantage

Establishing a feedback mechanism is critical in improving processes across a business. Steve Deist of Indian River Consulting Group examines the importance of having a “feedback loop” and how it can help distributors create a more strategic approach to sales.

This article is an exclusive summary of the recent MDM Webcast, CRM & the Strategic Sales Force.

This article includes:

  • Characteristics of an effective feedback loop
  • Best practices to getting feedback
  • Where many companies fail

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  • MDM Interview: How to Stand in Your Employees’ Shoes
  • Where Managers Blunder
  • Yes, Customers Want to Hear from You
Wholesale revenues, excluding manufacturers’ sales branches and offices, reported $989 billion in e-commerce revenues in 2012, or 20.1 percent of the industry’s $4.9 trillion in sales that year, according to data recently released by the U.S. government. This article looks at how overall sales growth for the industry compared with e-commerce sales growth from 1999 to 2012, with four graphs showing the trend.
private-label

Creating a successful private label strategy requires more than just putting the distributor’s name on the products. This article looks at key elements of building a private label strategy and the decisions distributors need to make to successfully implement that strategy.

This is the second in a series of articles from MDM on private label in the wholesale distribution industry.

This article includes:

  • The role of branding and positioning in private label success
  • The importance of having the right skills in place for implementing a private label strategy
  • The question of control versus liability for distributors

Subscribers should log-in below to read this article.

Not a subscriber? Subscribe below or learn more.

Or purchase this report in the MDM Store.

Subscribers also have access to the following related articles:

  • The Drivers of Private Label in Distribution
  • Profits in a Year of Strong Growth
  • Special Report: The Industrial Vending Boom
FLEX-QandA

As the face of the workforce shifts, managers need new skills to connect and effectively lead a more diverse employee base. A new book, Flex: The New Playbook for Managing Across Differences, was written to address this need. MDM Editor Lindsay Konzak recently spoke with the book’s co-author Jane Hyun, an executive coach and global leadership adviser to Fortune 500 firms.

This interview includes Hyun's take on:

  • Why it's important for manager's to be able to "flex" their management styles
  • How managers can bridge the power gap
  • The cost of not considering different management styles

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Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:

  • MDM Interview: Avnet's Roy Vallee Reflects on Changes in the Industry
  • Where Managers Blunder
  • Commentary: Re-evaluate the Human Capital in Your Company

Investment Banking Directory

Work with a banking partner that knows your business. Get detailed information on investment banks with expertise in the wholesale distribution industry.

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