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ISA is conducting an industry
survey for the new Monthly Business Conditions reports for distributors
and manufacturers. The survey takes fewer than five minutes to complete.
To take part, click here. Any questions you may have regarding the report
can be directed to Executive Vice President John Buckley at jbuckley@isapartners.org or by calling the office at
(718) 423-2113.
This second article of a
three-part series looks at the key competitors in integrated supply
markets and views on how the market continues to evolve. Use the email
and password provided in the ISA Advisor welcome email to access this
article. Tap into other articles like this at Modern Distribution
Management's ISA Research Center.
Learn from an industry leader how
eBusiness tools improved the bottom line. At ISA's eBusiness Summit,
Oct. 16-17, 2007, Pam Flaten of Target Corp. will also share some
creative ways to solve everyday business problems for large and small
companies. Learn more and register here.
Business is changing rapidly. Yet, in many ways it is
staying the same. We still have to invoice customers to get paid –
or do we? What we want is to get paid. Is an invoice really necessary?
This is only one example of the questions that require new answers to
prepare our businesses for future success. At ISA's eBusiness Summit,
Steve Epner of Brown Smith Wallace Consulting will offer recommendations
to improve your supply chain based on the research he did at Purdue
University on technology adoption by industrial distributors. Learn more
and register here.
Send name, title, email address and company
name of each colleague to info@mdm.com. Only employees of ISA member companies
will be added to the list to receive this weekly association update.
Top Gun Survival School for Distributor Salespeople – Between
Sept. 17 and Nov. 19 Details
Webinar: Professional Telephone Etiquette – Oct. 10, 2007
ISA E-Business Summit – Oct. 16-17, 2007
One-on-One Sales Management Seminars: Dave Unplugged Details
For more information on upcoming ISA events, go to isapartners.org.
KEEP READING! Breaking industry news and articles on
distribution trends follow your association news each week in ISA
Advisor. Articles six months and older are available free of charge
to ISA members. Subscription or pay-per-view required for newer content.
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MDM NEWS UPDATE: August 30, 2007
The HD Supply sale looks as if it will finally go
through. The Home Depot, Atlanta, GA, officially announced a change in
terms for its sale of HD Supply, its $12 billion wholesale unit. The
retailer will sell the unit to a trio of private equity firms for $8.5
billion, nearly $2 billion less than the original agreement of $10.3
billion.
In addition, Home Depot will purchase a 12.5% interest in HD Supply
for $325 million and will guarantee a $1 billion loan to the buyers. The
deal is scheduled to close today (Aug. 30). The reduction in price was
attributed to tighter credit conditions.
More...
Beyond HD Supply MDM Audio Conference – Distribution M&A
2007 Update: More Buyers, New Drivers in U.S. and Overseas Order
the CD Now
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This fasteners distributor knows
the value of having product in-stock. One of the family members
currently running ELFCO, Chicago, IL, tells Construction Distribution:
"As the industry changed, we started to expand into things like drill
bits, extension cords, ladders, holes, saws, anchors and power tools.
… Anyone can sell these things but having them in stock and being
able to deliver right away sets us apart. When a customer doesn't have
to wait, and doesn't have to come to the store and pick things up, that
makes doing business easy, and builds loyalty.
"We're still old school in many ways, and that goes back to Dad's
philosophy when he sold just nuts and bolts: Never be out of them; don't
give customers a reason to go anywhere else!"
More...
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This article from Accounting Age
aptly calls valuing companies a "dark art" because it involves combining
complex financial skills with the "ability to predict the future."
Wolseley – arguably one of the most acquisitive global distributors
– wants half its growth each year to be from acquisitions, and so
is well-practiced in deal-making and company valuations. This year the
distributor has made nearly four dozen acquisitions. Its group finance
director tells the publication the company has a "wrinkle-free" and
rigorous procedure it uses to value companies it wants to buy.
Though Wolseley doesn't typically compete with private equity firms
on acquisitions, other large strategic buyers do and say that the firms
have "shaken up almost every aspect of the M&A market," including the
way acquisitions and disposals are valued, the article says. MDM's view:
The $2B downtick in the valuation of HD Supply will affect valuations
for distribution companies – it has yet to be seen by how much.
More...
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TRANSFORM YOUR SALES TEAM AT THE
RITZ-CARLTON
Register today for a dynamic
two-day event exclusively for Distribution CEOs and Sales Leaders. Next
event: Chicago, Oct. 10-11, 2007
- Learn a proven holistic model for sustainable sales growth
- Take away tools to impact 2007 sales performance & support
aggressive 2008 sales goals
- Preview results of an NAW-sponsored research study conducted by
Solus Institute
- Hear Dirk Beveridge, industry innovator and president of Solus
Institute
- Attend a Disney Institute presentation aimed at elevating
distributor sales
To register, go online to www.solus247.com/register or call 800-227-4332.
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Which ownership structure should
you choose for your company? As this article from BusinessWeek states,
there are many choices from the most simple to the most complex. And of
course, many fall in between.
Take care when choosing a structure – your company's stage of
development is important, this article says. But also consider taxes,
administrative tasks, plans for raising capital and the risks you hold
in your particular business. Choose a structure that will protect you
with the least amount of rules.
More...
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As the trend of private label
among distributors grows, it’s important to recognize the legal
risks associated with this strategy. If products are sourced from
overseas, as many are, wholesalers may end up carrying the ultimate
blame or responsibility in a number of situations.
More...
It's getting harder for county
wineries in California to sell their wine – thanks to growing
consolidation of wine distributors and competition nationally and
globally. Distributor consolidation – cutting the number of wine
distributors more than 50% from 1990 to 2000 – has forced smaller
wineries to compete with big wine companies for representation, this
article says. Each distributor buys from hundreds of wineries and up to
10,000-15,000 labels. This makes it more difficult for the little guy to
be heard and well-represented to the end-user.
Wineries have two ways to market: through distribution and selling
direct to the end-user. Despite its challenges, distribution continues
to be suppliers' main path to market. More...
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This marine supplies distributor
implemented a Warehouse Management System at its single warehouse,
significantly cutting shipping errors and improving data collection and
sales trend analysis. Subscription to MDM's twice-monthly newsletter
required or pay-per-view now available. More...
MDM Special Report: Technology Best Practices Details
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SIGN UP YOUR ASSOCIATES
Sign up other members of your staff to receive breaking news, industry
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VISIT THE
ISA RESEARCH CENTER
ISA members receive access to more than five years of research and
articles on trends and best practices for wholesale distribution
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Management, a newsletter and information service. For more information,
visit the ISA Research Center.
ABOUT ISA ADVISOR
ISA Advisor is a weekly news and industry update provided as a member
service of the Industrial Supply Association. More information about ISA
member benefits and services is available at the web site of the Industrial Supply
Association.
ISA Advisor is published weekly by Gale Media, Inc., publisher of Modern Distribution
Management, on behalf of the Industrial Supply Association. 100
North 20th Street, 4th Floor, Philadelphia, PA 19103. All rights
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