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More than half of distributors
who try to automate their sales force fail, according to some estimates.
Take the advice of the distributors profiled in this article: Develop a
good sales process before adopting technology, and keep your sales force
involved from the start. 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.
After a summer without price
changes, flat-rolled steelmakers are increasing their quotes for October
deliveries. With the major mills going up $20 to $30 per ton, hot-rolled
sheet will go to $520-540, cold-rolled to $620-630 and hot-dip
galvanized at $750-760. American steel mills continue to operate in the
high eighty percent range, but steel service centers are trimming
inventories, thereby slowing their demands on the steel mills. This
document can also be accessed through the ISA
Research Center.
These exhibits by Profit Planning
Group's Al Bates provide an overview of financial trends in distribution
between 2002 and 2006. The analysis covers 40 different lines of trade
in distribution.
Implementing electronic business
transactions and bar codes won't help if the data is bad. At ISA's
eBusiness Summit, Oct. 16-17, learn how accurate item information will
improve sales, profitability and trading partner relationships. It will
also make the people in your own company much happier. There are best
business practices and standard ways to identify, measure, and weigh
your MROP items. Learn more and register here. Book your hotel room soon. The eBusiness
Summit hotel room block expires Saturday, Sept. 15.
The ISA eBusiness Committee announces availability of the
long-awaited ISA eBusiness Implementation Guideline. Click here for more information.
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: September 13, 2007
BusinessWeek
recently detailed the steps leading up to a change in deal terms for the
private equity buyout of the Home Depot unit HD Supply. The articles are
revealing, and are focused mainly on one of the firms, well-known in
distribution, Clayton, Dubilier & Rice. The article answers the
question: "What does a buyout baron do when the business climate changes
dramatically between the announcement of a major deal and the closing?"
As MDM reports in its most recent issue, tight credit markets are affecting
sizable deals in progress and may dampen historically high valuations.
Will private equity slow down the deal-making? That's unlikely. A
managing director of one firm tells MDM that firms still have a large
chunk of cash that needs to be invested, even if deal terms aren't as
favorable to the seller as they have been over the past two years.
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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Here's an
interesting take on the private-label trend. Apparently some Chinese
manufacturers want a bigger piece of the pie and are opening their own
operations in the U.S. They typically receive 20% or less of the value
of the merchandise they export to the U.S., according to the new
Electrical Trends blog.
Electrical Trends's take on this: "Brand building and competitive
pricing will continue to be the keys to success. Potential short-cuts
such as private labeling and contract manufacturing may result in you
creating a competitor. … Perhaps Sun Tzu’s advice in The Art
of War of “Keep your friends close, and your enemies closer”
should be interpreted as “keep your distributors/customers close,
and your manufacturers closer.” More...
Related from MDM
Private Label Use to Grow
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The $300-million Kelly Pipe Co.'s
path to master distribution was dictated in part by geography, according
to this article by Supply House Times. "Historically we used to think of
ourselves as a big fish in a small pond," the CEO says. The
distributor's focus then was the Rocky Mountains. "We looked at Texas,
where more pipe is sold by accident than is sold on purpose in
California, and we wanted a piece of that pie. Master distribution is
the way to open the door."
Of course, the distributor's relationship with each type of customer
is different, but the idea of customer service does not change whether
serving a contractor or another distributor: "Service is critical, no
matter who the customer is."
More...
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Recruiting and retaining
salespeople can be a tricky task. The first step, according to this
article from the International Foodservice Distributors Association, is
to create a list of key characteristics of a desired salesperson. The
list should include characteristics related to the particular person as
well as the company's values and culture. They should not be
job-specific, such as product knowledge, but rather should look at
whether a candidate has the right traits to become a good salesperson.
These include: personal accountability, self-management, goal
achievement, and passion for the job and a desire to make money. The
"right attitude" is also key, which involves a strong sense of
self-worth and highly developed interpersonal skills.
More...
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Companies that want to be lean
should use a systematic approach toward building and managing their
supply chains. Have you analyzed how your supply chain plays to your
competitive advantage (or disadvantage)? This article by IndustryWeek
says developing a lean supply chain involves seven steps: developing
systems thinking, understanding customer value, value stream mapping,
benchmarking best practices, managing demand volatility, creating flow,
and performance metrics.
More...
Latest MDM Market Analyses by End User & Region: Hoists, Power Tools, Hose & Fittings, & Pneumatics. Market Analyses six months and older in
MDM's archives are available free to ISA members with their username and
password. Newer analyses available by pay-per-view or subscription to MDM. Archived
Market Analyses available in the MDM Databank.
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IndustryWeek asks: "When
they walk out your door, are you prepared to absorb the increased costs
of inefficient repairs and operations?" The argument: When the first of
the Baby Boomers start retiring, they will take a wealth of knowledge
with them. This knowledge will be critical on a plant floor where
workers have great expertise on products, equipment maintenance, repair
and operations.
Both distributors and manufacturers must be prepared for this exodus
of knowledge. Is your training program up to the task? How can you as a
distributor help your customers prepare for this transition? Some
suggestions offered up by IndustryWeek: Hire retired workers on a
part-time basis (though not for the long-term), establish a culture that
encourages apprenticeships, mentoring, and knowledge transfer, and
institute a highly-customized training program designed for your
facilities. More...
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Continuing weakness in the housing
sector will hold up growth in the overall economy, according to the
Chicago Fed Letter. The economy is expected to expand at a rate below
trend in 2007, it says, with a slight rise in unemployment. GDP growth
will pick up again in 2008 with unemployment unchanged, and inflation is
expected to rise this year. However, inflation should moderate in 2008
with a release of pressure from energy. This article is a quick snapshot
of several key economic indicators and forecasts through 2008.
More...
Economic indicators updated monthly at the MDM Databank.
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