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This report from Dr. Albert
Bates, president, Profit Planning Group, examines how sales volume can
help or hurt financial performance for the typical ISA member. According
to Bates, the understanding that "nothing happens until somebody sells
something" causes otherwise rational individuals to undertake bizarre
sales-generating activities. This report looks at good sales versus bad
sales, and how to motivate employees to focus on the good. More ....
The 2007 Industrial Supply
Conference & Trade Fair – the largest
distributor/manufacturer/independent manufacturer representatives' event
in the industry – is over. If you attended, we want to hear from
you. Please participate in our online satisfaction survey. The survey
will only take a few minutes to complete. More ....
While activity based costing
proved to be a successful measurement tool for manufacturers in the
1990s, this article suggests that distributors today should use customer
profitability analysis as a more effective means to analyze and manage
their ongoing investment in customers. Tap into other articles like this
one at Modern Distribution Management's online archives,
available to ISA members.
More ....
- May 22, Webinar – Developing Equitable Pay
- May 24, Seminar – Strategic Selling to Major Accounts
- June 11-12 – Dave Kahle Sales Academy
- June 11 – Conference & Trade Fair Planning Committee meeting
- June 12 – Board of Directors Orientation
- June 13 – Committee meetings for e-business, revenue,
enhancement, profit improvement & cost containment
For more information on any of the above events, go to isapartners.org.
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Canada's wholesalers enjoyed a
sales increase of 6.3% in 2006, with strength from Western Canada and
the machinery and electronic equipment sector. Albert led the nation
with a 13% increase in sales. Profits rose 15.1% to $16.6 billion for
the year. Statistics Canada's annual year-in-review report, "Wholesale
Trade: The Year 2006 in Review," is out, and details trends in Canada's
wholesale industry, by sector and province.
More ....
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In Home Depot's first-quarter
earnings conference call, executives refused to comment on the progress
they are making in evaluating "strategic alternatives" for the HD Supply
unit. Speculation in recent months has been that HD intends to sell the
wholesale division, with a mix of strategic and financial buyers lined
up to buy all or parts of the division.
CEO Frank Blake would say nothing in response to analyst questions
except that the process will be more "expeditious" than most and that
there has been strong interest in HD Supply assets. HD Supply sales
suffered along with most building materials distributors in the first
quarter, falling 6.5% on an organic basis. Sales, with acquired
businesses, grew by 46% to $3.1 billion.
Beyond HD Supply: What do you really need to know about M&A in
2007? Join MDM today, May 17, for our Distribution M&A 2007 Update in a
live audio conference at 1 p.m. EDT or order the audio conference CD
package with handouts. Register or Order Here
More ....
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Buyers still consider price as
their top priority, according to Purchasing magazine's 2007 report on
distribution. Second in line: technical service. Buyers say distributors
need to "beef up" their technical support, while still providing the
lowest prices and highest service levels. In a separate but related
study, distributors say buyers want more information on pricing
justification and more value-added services.
More ....
As customer bases shift,
competition intensifies and commodity prices seesaw, it’s more
crucial than ever for distributors to maximize profitability. Increasing
prices by 1 percent without hurting volume can improve profits as much
as 11. Article available on a pay-per-view basis, or subscribe
today.
More ....
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Nearly 80% of engineering,
technical, purchasing and industrial professionals turn to search
engines, online directories or Web sites first to find new distributors,
according to GlobalSpec's "Distributor Buying Trends 2007 Survey White
Paper." Engineers in particular wanted the ability to search online by
specifications and part numbers. These customer bases said they wanted
up-to-date content online, as well as technical specifications and a
searchable online catalog.
The survey also found that while price is No. 1 in the decision to
work with a particular distributor, availability, delivery and customer
service are important factors in choosing a distributor. Location was
not a major factor.More ....
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Nigel Sibley, managing director
of Wolseley UK, told Contract Journal recently that there is need to
establish standards for labeling products as environmentally
sustainable. Manufacturers often choose the measure by which they are
evaluating whether a product is environmentally friendly, he says. "Even
if you get sustainable products on site there is a chance that incorrect
use may compromise their environmental credentials," he says.
Wolseley UK plans to step into this void. It will open a
"sustainability center," designed to showcase environmental products and
materials. The building materials and HVAC/plumbing distributor also
plans to train on the products' installation. "We have the relationship
with the suppliers, and we have the relationship with the customers,"
Sibley told CJ. "And we're handling the product. It is then about trying
to help people with their design, which we have already does with some
customers." More ....
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BusinessWeek reports that the
downturn in the housing market has caught smaller homebuilders by
surprise, leaving many "overextended with costly land they can't develop
and unfinished homes they can't sell." Dozens of small- and mid-size
builders have filed for bankruptcy in the past six months. More ....
A new AMR Research report shows
that manufacturers may shift a quarter of production offshore if the
problem of chemical pricing and supply isn't solved, IndustryWeek
reports. According to the American Chemistry Council, 96% of all
manufactured goods have some chemical component. About 90% of those
surveyed reported chemical costs were rising, with 62% saying the
increase was substantial. More than 40% say domestic chemical capacity
is decreasing. If more production goes abroad, this would cause a ripple
effect, according to the article, as plants close or are downsized, and
as local suppliers lose large customers.
More ....
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