DO YOUR HOMEWORK BEFORE IMPLEMENTING REPLENISHMENT PROGRAMS
It's important to remember that not all customers are good candidates for replenishment programs, according to All-West Components & Fasteners, Seattle, WA, in this feature by Construction Distribution. The distributor often finds customers say they need more than they actually do. In response, the company does a complete analysis of a company's usage history using real numbers – especially on specialty or special-order items.

"It isn't unusual for a guy to order 2,000 of something so he can get the best price, even though he only plans to use 1,000. Then, the distributor winds up stuck with half the order," the distributor's president tells the magazine. "Now, we won't do that unless the customer agrees to take all the product within an agreed-upon timeframe. It comes down to, 'You ordered it, you buy it.' All the extra inventory is just a drag on a business like ours.” More...

MCKESSON A TAKEOVER TARGET?
Of all the drug wholesalers, distributor McKesson Corp. makes the best takeover target for a buyout firm, according to a recent Wall Street Journal article. Pembroke Consulting's Adam Fein, in a recent blog post, agrees and says the wholesaler's business mix, operating platform and the age of its management team make it attractive. What's more, the company has very little debt. Fein says: "Keep in mind that a financial buyer is effectively purchasing the cash flow generated by a business and may finance the purchase by borrowing against the assets and future cash flows of the acquired company." More...

McKesson Sales Grow 9% in 2Q

BUSH UNVEILS IMPORT-SAFETY PLAN
In response to the recent spate of recalls of products that were made in China, the Bush administration has proposed to give the federal government "sweeping authority" over imports, and most think it's a good idea as long as the plan is carried out. One policy analyst in the food industry tells the New York Times: "Where's the money, and what will the final regulations look like after the Congress and the media have moved on to other issues?"

As part of the plan, the government would revamp how it monitors the $2 trillion worth of imported products each year, according to the NYT article. The idea is to catch bad products before they are exported. A trade lawyer said that despite the federal government's stepping up in the matter, private businesses still need to play the largest role in ensuring the safety of products they import. More...

SYSCO has taken steps in recent months to improve its tracking of the supply chain for its non-SYSCO branded food products. Here's a statement from SYSCO on its new plan.

WHEN LOOKING FOR TALENT, FOCUS ON FINDING A GOOD CULTURAL FIT
The author of this Forbes articles says that sometimes the "tyranny of the urgent" impedes a deliberate and thorough process to fill an opening at your company. When it's time to hire someone new, view it as an opportunity to upgrade talent and improve the company – which can only be done if you find the right person. Some of his tips:

• Focus on what qualifications are needed to help achieve your business goals – and don't focus on "pedigree" alone.
• Reflect actual job duties and expected outcomes – short-term and long-term – in your job specifications.
• Bring in the perspectives of people who will be peers and/or subordinates of the person in the new position. They know best the departmental culture and needs of the job.
• A prospective new hire's response to your corporate culture, processes and "idiosyncrasies" may say more about her potential success than her resume does.

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