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Doug Levin has been
involved in distribution information technology for more than 20 years.
He is well known in many distribution sectors as the former executive
vice president of Prophet 21, acquired by Activant Solutions in 2005. In
this interview, the guy who sold a lot of technology systems urges
distributors to optimize current systems first. Here’s Levin’s
perspective on IT best practices, standards, consolidation and
challenges ahead. More...
The Board of Directors of Industrial Distribution Group has
recommended accepting a bid of $11.75 a share, or $130 million, from
WESCO Distribution Inc. Scroll down for more details.
 KICK OFF CONFERENCE EXPERIENCE WITH PHILIP
GULLEY
An Emmy Award-winning
writer, humorist and inspirational speaker, Gulley will kick off Sunday
morning with an uplifting message focused on his latest book, "Porch
Talk," a collection of heart-warming stories from real-life situations
that offers musings on leisure, marriage, faith, family and enjoying the
little things. This will be a program you will not want to miss.
CONFERENCE EDUCATION: THE 1%
DIFFERENCE
Most employees feel
the decisions they make on a daily basis are rather insignificant, but
the reality is small 1% changes to key variables can often improve
profitability by 10%-75%. In this session, you will learn about simple
tools to use in communicating the importance of these decisions and
engaging employees in finding the 1% improvements. Attendees at this
session will receive a free publication on the 1% solution.
Any registrants after April 18 will be included in the
on-site supplemental registration list and will have to pick up their
programs and badges on-site. 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. Distributor report here. Manufacturer report here. Also available at the ISA
Research Center.
Congratulations to T&A
Industrial Distributors, Seco Tool, The Tooling Support Group and
Haggard & Stocking Inc.! Click here to learn more.
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.
This book from the
National Association of Wholesaler-Distributors will help you grow your
distribution business by better understanding how successful acquisitive
distributors operate. The research behind this book includes a study of
hundreds of acquisitions. The book was written with two objectives in
mind: to find the best practices behind deals that work and to unveil
the "worst." Order by clicking here. NAW Member Associations
receive discounts when buying.
The second session
for UID in 2008 will be held in Indianapolis, IN. More information and
details on how to register will be available in Summer 2008. Questions?
Call 410-263-1014.
ISA has partnered with NOVA, now Elavon, to bring you a
credit card processing program designed to meet your needs.
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.
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
Dec. 2-5: University of Industrial Distribution
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: April 17, 2008
(Click headline
to view)
MDM Publisher Tom Gale says
that most industry observers look at Industrial Distribution Group's
checkered ten-year history as a public company, specifically its
sluggish earnings reports, and see an under-performing distribution
business. But what WESCO and the two other bidders recognized is that
IDG has largely done a great job preserving and growing customer
relationships. It is very competitive in its markets. It strayed and
moved away from its core distribution business, but last year refocused
on its core competency. There is good reason to think that IDG has been
undervalued since the beginning and never really took flight because it
always had one issue or another to deal with.
WESCO's last-minute catch of Industrial Distribution Group is a good
fit with its integrated supply-focused Bruckner Supply business,
together with its strong electrical distribution business into
industrial accounts. It's also a good fit from a broader perspective in
terms of where WESCO is positioned with international competitors in
North American markets. Gale writes that in today's consolidating
markets, you have to look well past the financials to determine the real
value of relative competitive position, customer loyalty and retention.
Those are more qualitative and difficult to measure, but will be more
meaningful to assessing the real long-term value of a company. More...
IN THIS WEEK'S ADVISOR: (Scroll down to view.)
MDM Blog: Current Economic Climate Ripe for Gaining a Strategic
Advantage
NAHB Chief Economist: 'U.S. Economy in Mild Recession'
Motor Vehicle Industry Boosts Canadian Manufacturing Sector
Why You Should Recruit Older Workers
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Product Strategy
MSC Industrial Direct's
latest Safety Products Catalog launch is part of its strategy to further
penetrate existing customer accounts, according to Erik Gershwind, MSC's
senior vice president of product management, marketing and strategy.
"The interest in safety products has been building in our customer base
for the past few years," Gershwind says. "We definitely saw a
demarcation point after 9/11. Our customer base has a heightened sense
of awareness of keeping the workplace safe and protecting the well-being
of their employees."
Gershwind tells MDM that penetration of existing accounts was a key
growth strategy for the industrial distributor, based in Melville, NY.
"Our customers are dealing with many suppliers, so there continues to be
market share opportunities in existing accounts," he says. "It's one of
the most exciting opportunities we see. The safety initiative is one
example of that." MSC's newest safety products catalog features 40,000
products, a 50% increase in SKUs since the company's first safety
catalog released in 2005. The distributor broke out a separate safety
products catalog that year in response to customer demand. More...
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Economy
MDM Editor
Lindsay Young reviews a slew of economic indicators and reports out this
month that don't portend well for the U.S. economy. Among them: the
quarterly industrial production report, a 12% drop in housing starts,
skyrocketing oil prices, and indications that the manufacturing sector
continues to contract. A study released by the National Small Business
Administration found that 71% of small and mid-sized businesses surveyed
have a negative outlook on the economy this year as compared with 45%
last year.
But just as market leaders in any industry do not allow themselves to
be absorbed by competitors' moves, which they can't control, companies
cannot become overwhelmed by the onslaught of negative economic data and
reports. While caution is always advised, there are niches in the
current economic climate where companies can gain a foothold so that
when the downturn passes, they will be a clear step ahead of the
competition. More...
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Housing
The chief economist for
the National Association of Home Builders says the deepening slump in
the U.S. housing markets has "seriously eroded consumer sentiment" and
pushed the economy into a mild recession. “The
worse-than-anticipated housing downturn, combined with systematic
weakening of the labor market and rapidly rising energy and food prices,
has taken a heavy toll on American consumers,” said NAHB’s
David Seiders. “It’s now clear that we have entered what we
anticipate will be a mild recession, running through the first half of
this year, and there are substantial downside risks to this economic
scenario.”
Given the ongoing erosion in housing finance markets and buyer
demand, Seiders has adjusted NAHB’s official housing forecast to
indicate continuing downward movement in housing starts through the end
of 2008, bringing the decline for the year to 30 percent. More...
Related from MDM
Housing Starts Fall 11.9% in March
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UNLOCK NEW PROFITS WITH FORECASTING & INVENTORY PLANNING
Are you finding that your
current systems lack the speed, flexibility and responsiveness to manage
demand in an increasingly complex supply chain environment? Discover how
distributor are using demand planning to improve forecast accuracy by
20-40%, increase on-time deliveries up to 20%, and slash inventory
investments and increase turns by 15-20%. Find out where your company
fits on the Demand Planning Maturity Model and discover strategies and
technologies you can apply to improve forecasting and inventory
management.
Click
to download the Demand Planning for Distributors white paper.
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Canada
Sales of goods manufactured
in Canada rose 1.6% to $50.1 billion in February, due in part to a
gradual bounce-back by Canada's motor vehicle industry. This marked the
second successive increase in manufacturing sales, as manufacturers
continued to make up ground lost after a 3.7% decrease in December,
according to Statistics Canada. The increase in motor vehicle production
comes after production slowdowns and shutdowns in December and January.
Sales of motor vehicles jumped 11.7% in February, but are still down
20.5% from the same month a year ago.
Sales levels however are still down from a year ago, due to the
slowdown in the U.S. economy and the increasing costs of inputs and
energy. Also, the strength of the Canadian dollar has eroded Canadian
manufacturers' competitiveness on the global stage.
More...
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From Around the Web
DC Velocity says when looking for workers in the
warehouse, you should consider the older demographic in your search.
Yes, a large number of baby boomers will be retiring soon, having an
effect on the labor force and talent in every industry. But this article
contends that you can look at the trend as an opportunity as well. Why?
Well, this author says over-50 workers may actually boost warehouse
productivity, due to more experience, recorded fewer accidents on the
job, and a tendency to work "smarter, not harder."
Older workers also seem to be less easily distracted. One warehousing
expert quoted tells DC Velocity: "The more senior warehouse associates
usually are at the top of the list in terms of productivity, quality and
consistency. I've never found somebody who's not been able to achieve
performance incentives due to age."
More...
Most Popular Stories at mdm.com
Two More Bidders for Industrial Distribution Group
HD Supply's Interiors Business Enters Atlanta Market
MSC Industrial Sales Up 8.4% in First Half
Report: Manufacturing Will Rebound in 2009
Ferguson Launches New E-Commerce Site
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