Private Label

HD SUPPLY LAUNCHES PROPRIETARY BRANDS
HD Supply, Atlanta, GA, has launched two new proprietary brands: Seasons and Brigade. The Seasons brand will be carried on products such as kitchen and bath fixtures and ceiling fans, ultimately used by consumers, while Brigade will be carried on heavy duty products, such as tools and hardware, ultimately used by professional contractors and trades people on the job.

CEO Joe DeAngelo told MDM in this interview that the company is not moving away from national brands. "We want to have something in our sales kit that the other folks don't have, and that we're able to, wherever there is a value gap, fill it so that our customer is never without." DeAngelo also said HD Supply preferred the term "proprietary brand" to "private label." "I think normally what private lable does is says you're trying to make something that you're going to price less than other guys. And that's not our intent. Our intent is to be price-competitive always but make sure we are paid for the features and values sets we're bringing to the marketplace." More...

Green

MDM BLOG: GETTING SOLD ON GREEN
In the spirit of Earth Day – Tuesday, April 22 – MDM Editor Lindsay Young looks at the trend toward green products and practices among distributors. As energy costs go up, distributors have and are taking the opportunity to create demand for products that will help customers save money. The truth is, though customers want to do the "right thing" by implementing eco-friendly practices and using green products, in the end it comes down to the bottom line. "I think 'the right thing to do' set the stage for the changes, but the thing that gets it done is that it's a way to save money," says Bob Shaunnessey, director of the Warehousing Education and Research Council, on the trend toward greener distribution facilities.

Still, it won't be long before green products and practices will become the norm and will no longer be a clear competitive advantage. Sonepar USA CEO Tony Burr recently told MDM that the key to growing through green is to get in at the ground level because it will not be a high-growth area forever. "In five years we won't be talking about this – this is going to be the way it will be. … It's like e-commerce. You have got to be there at the starting point." More...

Technology

THERE IS MORE TO SELECTING SOFTWARE THAN SELECTING SOFTWARE
More features and functions have become standard among software companies, so they are no longer enough to make a decision on technology for your company. This article from Brown Smith Wallace at mdm.com outlines what you need to look at when considering solutions for your distribution company. To find the right fit, link your software plans to your business plans. Create a business case outlining your objectives, defining tactics to achieve these objectives and includes a financial forecast before making a major purchase. Also consider risks.

When it comes to creating a list of your top vendor choices, make a list of requirements for your business, starting with a list of the business processes critical to your company. And remember, evaluating the vendor is as important as the software. The vendor becomes a partner, planning the implementation, installing software, converting data, and working with your staff. So take as much time evaluating the vendor relationship as the software. More...

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U.S. Economy

MDM BLOG: ECONOMIC STIMULUS ACT MAY SPUR CAPITAL INVESTMENT
The Economic Stimulus Act of 2008 provides incentives to businesses to make purchases they may have otherwise put off another year. The incentives include a 50% depreciation allowance for 2008 purchases and an increase in the small business expensing limitation for tax years beginning in 2008.

The National Association of Wholesaler-Distributors' Jade West said that the association "worked extensively" for these incentives, and that though the act may not significantly change the plans of larger businesses who had planned to make capital purchases anyway, it may change the plans of smaller businesses who want to take advantage of the incentives. More...

Global Economy

MAPI FORECAST: WEAKER BUT STABLE GLOBAL ECONOMY
Recent data offer persuasive evidence that the U.S. recession and financial crisis are having a material impact on the near-term prospects for economic growth in key industrialized regions, most notably Canada, the Eurozone, and the United Kingdom, according to a new report from the Manufacturers Alliance/MAPI. But while weaker growth is likely in these areas, there are not signs of significant instability in the global picture and a "soft landing" for industrialized countries and overall world growth remains within reach, the report says. Further, economic activity remains strong in South Asia and East Asia outside of Japan.

In the MAPI Quarterly Forecast of U.S. Exports, Global Growth, and the Dollar: Second Quarter 2008 Through Fourth Quarter 2009, economist Cliff Waldman forecasts a weaker but still stable global economic climate, although forecast risks are clearly on the downside in a world in which multiple concerns include virtually uncharted financial uncertainty. Much, he argues, will depend on the implementation of appropriate policies, particularly by central banks. More...

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