The 2020 Mid-Year Economic Update_long

Day: April 10, 2007

Changing Channels

This article is available to non-subscribers through online access below, or by purchasing the series, Changing Channels, in the MDM Store.

While the basic concepts for effective channel management haven't changed, new competitive pressures have changed the focus to channel profitability. Here's an analysis of the key shifts taking place in independent distribution channels. Part 2 of this article will outline manufacturer-distributor emerging best practices in channel management.

Relationships between manufacturers and distributors have been a topic of conversation at conventions for decades. The tension has always been there," says Marshall Jones, a past president of the Specialty Tool and Fastener Distributors Association. "But the sources of that tension have changed.

Distributors and manufacturers are navigating uncharted territory and areas that until now maintained some ...

Global Economic Report: Soft, Stable Landing in 2007-08

Tighter global monetary policies, the unwinding of investment excesses, and the moderation that tends to accompany maturing expansions all point to an imminent period of slower growth for the global economy, according to a new quarterly report.

In the MAPI Quarterly Forecast of U.S. Exports, Global Growth, and the Dollar: Second Quarter 2007 Through Fourth Quarter 2008, economist Cliff Waldman concludes that the impact of the housing downturn in the United States and the near-term path of the embryonic investment slowdown in China are the two key variables that will determine the strength and stability of the world economy during 2007 and 2008.&nbsp ;

Financial markets have been nervous about the U.S. and Chinese outlook," he writes, "but most indications ...

Monthly Wholesale Trade: February 2007

Sales. February 2007 sales of merchant wholesalers, except manufacturers'sales branches and offices, after adjustment for seasonal variations and trading-day differences but not for price changes, were $340.8 billion, up 1.2 percent from the revised January level and were up 7.1 percent from the February 2006 level. February sales of durable goods were down 0.8 percent from last month, but were up 4.4 percent from a year ago. Compared to last month, sales of lumber and other construction materials were down 3.0 percent and sales of electrical goods decreased 1.8 percent. February sales of nondurable goods were up 3.2 percent from last month and were up 9.8 percent from last year. Compared to last month, sales of petroleum and petroleum products increased 8.8 percent ...

Commentary: The Slippery Subject of Channel Management

Channel management is a slippery subject. The most jaded observers might argue the term has largely become an oxymoron, as stories of mismanagement and dysfunctional practices seem like commodities.

But as the lead article in this issue outlines, distributors and manufacturers are finding ways to leverage the current shifts in markets to focus and define their value. Channel participants are grappling with many complex issues -converging channels, private label brands, new product programs, new discount models.

The key emphasis today is active management. One size can't fit all. Those who gain some understanding of how customers are shifting in their sourcing needs and problems, and then build programs and policies to meet those needs, find a competitive differentiator ...

MDM News Digest 3707

VWR International, Inc., West Chester, PA, $3 billion supplier to the global research laboratory industry, has acquired the remaining 76 percent interest in KMF Laborchemie Handels GmbH, a German-based scientific laboratory supply distributor. KMF has 70 employees, all based in Germany, with annual revenues of US$45 million.More ...&nbsp ;

Platinum Equity, Los Angeles, CA, has completed its acquisition of Strategic Distribution, Inc., MRO distributor to industrial and institutional customers in the U.S., Canada, and Mexico. The acquisition is a public-to-private transaction and Strategic Distribution Inc. has been delisted from the NASDAQ exchange, with each share of common ...

MDM Inflation Index: February 2007

Modern Distribution Management's February Inflation Index, which measures a cross-section of industrial supplies, was up 0.29% from the previous month, and up 3.27% from February 2006.

Summary of&nbsp ; MDM Inflation Index for the past 12 months:

February 2007 Index 269.4
January 2007 Index 268.7
December 2006 Index&nbsp ; 267.1
November 2006 Index 266.5
October 2006 Index 265.9
September 2006 Index 265.6
August 2006 Index 265.2
July 2006 Index 264.0
June 2006 Index 263.0
May 2006 Index 262.1
April 2006 Index 262.1
March 2006 Index 262.1
February 2006 Index 261.2

Please click below on Related Document to view a print-ready pdf of the&nbsp ; MDM Inflation Index for February 2007, ...

MDM April 10, 2007

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