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During an economic slowdown, a “siege mentality” is
understandable but not always productive, says Steve Deist of Indian
River Consulting Group. Though many industries are still seeing growth,
some – including the housing industry – are struggling. This
is a timely excerpt from a piece by Deist on how to turn a downturn into
a strategic opportunity. Read the Article
After reading your weekly ISA news, scroll past the yellow section
for your weekly distribution industry news update and features. New this
week: ISA Advisor includes subject headings to help you better navigate
and find the information you need.
 REGISTER TODAY for the Industrial Supply Conference and
Trade Show
For more information
on the opportunities available to you at the event or to register, go to
www.isaconference.org or click here. Contact ISA at info@isapartners.org or
call 215-320-3862 for more information.
The Economic Indicator Survey Results report is a
monthly breakdown of the findings of the ISA Quarterly Economic Report
provided by Texas A&M University. These reports can be used in
short-term business planning. Distributor report here. Manufacturer report here. Also available at the ISA
Research Center.
Last year on behalf of two
major industrial distribution associations, a study was conducted by
Bill McCleave on the Future Impact of Size and Value Content on the
Industrial Distribution Channel. In that study, respondents indicated
that the quest for human talent was a real challenge. As a followup to
that study, we would like about nine minutes of your time to see what
you believe the future people challenges will be and what solutions are
available. Your individual responses will be kept confidential. Please
click on the appropriate link below. Thank you!
FREE - One of the most valuable member services you receive
is the opportunity to participate in the Profit Report.
EASY - Simply fill out the operational questions on the
survey and attach a copy of your income statement and balance sheet and
send it to the Profit Planning Group.
VALUE-ADDED BONUS – Dr. Al Bates, the Profit Planning
Group, has agreed to SPEAK with any member participant free of
charge for up to 15 minutes, on any topic of concern. Your
company must participate in the 2008 Profit Report to be eligible
for this free consultation.
Click here to participate in the 2008 Profit
Survey.
How do you know if
you are achieving more as a company? What signs indicate that you may be
having problems? How do you know if you are meeting your customer needs?
Click here to read this important ISA report on
measuring customer satisfaction.
The 2008 Wholesale
Distribution Economic Reports contain detailed 2007 economic statistics
on the $3.9 trillion wholesale distribution industry. Use these Reports
as invaluable reference tools if you are selling to, investing in, or
managing a wholesale distribution company. Order by subsector. Click here to order the book from NAW today or for
more information.
In addition to working with your data, TAG Logistics
will also observe your loading, routing and dispatch functions in the
warehouse. They observe the inside sales process to see how sales is
driving the customer delivery commitments. TAG works with purchasing to
learn how product is procured and delivered to your company locations.
To take advantage of this affinity program and learn more about their
products and services call (413) 565-4641. Be sure to check out all of
the other cost reduction programs ISA has to offer at isapartners.org.
The ISA eBusiness Committee announces availability of the ISA
eBusiness Implementation Guideline. Click here for more information.
April 18: Deadline to receive ISA Conference & Trade Fair Early Bird
Registration Fees and to be listed in the printed conference program.
The program will be mailed in advance.
April 15: Profit Report - Deadline to Participate
May 21: How to Find and Keep the Right Employees … Without
Stealing from the Competition Webinar Details
June 1-3: ISA Industrial Supply Conference & Trade Fair, Chicago, IL
Details
Sept. 10: Developing an Inventory State of Mind Webinar
Nov. 19-20: Save the Date: ISA EBusiness Conference
Dec. 2: The Telephone Doctor Webinar
For more information on upcoming ISA events, go to isapartners.org.
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.
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MDM NEWS UPDATE: March 27, 2008
(Click headline
to view)
Operations
The Home Depot, Atlanta, GA, which sold off its
wholesale operations mid-2007 but continues to target professionals with
its Own the Pro initiative, needed a more effective way to manage
inventory for its lower-volume stores and seasonal and promotional
products. “The existing Home Depot supply chain worked great for
high-volume stores, which had no trouble making frequent orders to
vendors for direct store delivery to allow them good in-stocks and
inventory turnover,” Mark Holifield, Home Depot’s Senior Vice
President-Supply Chain, told analysts in HD’s recent annual
earnings results call with analysts.
“But in lower-volume stores, without an effective central
distribution network, our store associates are forced every day to make
the tough choice of being out-of-stock or overstocked due to vendor
minimum order quantities, long wait times and unreliable
replenishment.” HD's solution? Rapid Deployment Centers, fast-flow
distribution centers with the capability to process faster moving goods.
Read more about the new network here. More...
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What are the Benchmarks for Success in Distribution?
A successful benchmarking
effort begins with an understanding of common performance metrics. The
Annual Census of Distribution conducted by the MPI Group identifies
current performance levels for key technologies and processes—from
radio-frequency identification (RFID) to Six Sigma—in distribution
centers and warehouse operations. Learn how savvy distributors are using
benchmark metrics and adopting best practices to stay one step ahead of
the competition. Click here to read the Annual Distribution
Executive Summary.
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Strategy
A distributor of mostly snack
items, like candy, has a unique focus: non-food retailers. While many in
Liberty Distribution's niche serve convenience stores, Liberty focuses
on what it calls "non-traditional customers," including consumer
electronics, home improvement, auto parts and pet supply retail chains
where customers are not necessarily thinking of food, according to this
article in the Arizona Republic. Says the company's owner: "No one is
going to these stores to buy these items, but they're walking out with
them."
The strategy seems to be working; in the past four years, Liberty has
seen average annual compound revenue growth of 26%. One of Liberty's
customers, an auto parts/repair shop, says in this article that the
success of the product sales are the results of a "captive audience"
– in other words, people waiting for their car to be fixed have no
other place to go. And the shop can make more on margin because it does
not compete with supermarkets or convenience stores.
More...
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Economy
The worst thing a company can do
in an economic downturn is panic, according to this article in the Wall
Street Journal. Instead, companies should look for growth opportunities.
For example, some companies are taking advantage of the weak dollar and
strong growth in India, China and other emerging economies. Products are
now cheaper overseas. One supplier of specialty metals and aluminum is
looking for overseas sales to double this year after also doubling in
2007, according to WSJ.
The company, Horizons, is working with a consultant that has a
network of business contacts in India – the supplier also recently
hired a consultant in France to help growth there. "If you're small, as
we are, you can't do this entirely on your own," says Horizons'
international sales director. Subscription to WSJ required.
More...
Latest economic indicators at the MDM Databank.
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Logistics
The American Trucking Association
announced it is projecting record-high diesel fuel prices in 2008. The
association said the trucking industry will spend $135 billion on fuel,
based on current fuel price forecasts. This is $22 billion more than in
2007. Historically, according to the ATA, fuel represented the
second-highest operating expense for motor carriers, accounting for as
much as 25% of total operating costs. For some carriers, however, fuel
is starting to surpass labor as the largest expense.
The cost to fill the fuel tanks on a typical tractor trailer has
increased 116%, or $615, in just five years, according to the ATA.
Because trucks haul 70% of all freight tonnage, the ATA says, rising
fuel costs have the potential to increase the cost of all products
transported by truck, including food, retail and manufactured goods.
More...
Related from MDM
MDM BLOG: Fuel Costs Hit Distributors' Bottom Lines
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Management
St. Louis, MO-based Graybar, a
distributor of electrical and communications products, has achieved the
No. 1 ranking on the annual FORTUNE “America’s Most Admired
Companies” list in the Wholesalers: Diversified industry category.
The list is featured in the March 17 issue of FORTUNE.
Rounding out the top five on the diversified wholesalers list were
Grainger at No. 2, Reliance Steel & Aluminum (3), Genuine Parts Co. (4),
and Anixter International (5). The top four for foodservice: CHS (1),
Sysco (2), Performance Food Group (3), and United Natural Foods (4).
Henry Schein was No. 1 on the healthcare distributor list, with
McKesson, Cardinal Health and PSS World Medical rounding out that top
four.
More...
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