July 25, 2008 - Modern Distribution Management

Log In

Search

July 25, 2008

Lessons Learned On Lean

Leave a Comment / Research & Analytics, Strategy, Management, Subscriber Only /

For years, manufacturers have used the concept of lean to improve efficiencies in their operations. Now distributors are moving forward with their own lean initiatives - looking at ways to reduce costs by improving internal processes. In this article, a dental supplies distributor shares its experience with lean.

At the beginning, going lean seemed so simple to Chuck Cohen, president of Wilkes-Barre, PA-based Benco Dental: Assign someone to identify waste and work with employees to eliminate it.

But when some employees seemed unable to overcome the "We do that already" attitude, he realized it wasn't so simple.

"Lean is the most seductive yet complicated process I've ever been involved in," Cohen says. "It's really easy to do OK at it. It's ...

Lessons Learned On Lean Read More »

MDM Interview: Lean Catching On With Distributors

Leave a Comment / Top Distributor Sectors, Subscriber Only, Strategy, Management /

The idea that a lean operation -one that continually identifies and eliminates wasteful activities to reduce internal costs -can be a more profitable one has long been accepted by manufacturers. Distributors are now starting to apply that idea to their operations. Dr. Perry Daneshgari, president of MCA Inc. and co-author of Lean Operations in Wholesale Distribution, now available from the National Association of Wholesaler-Distributors (www.nawpubs.org), recently spoke with MDM about how the distributor mindset is changing.

MDM: Is lean is something that you're seeing a lot more of in distribution?
 
Perry Daneshgari: I see more sparks of interest, but is it being applied more? Not yet, but there ...

MDM Interview: Lean Catching On With Distributors Read More »

Growing in a Difficult Banking Climate

Leave a Comment / Subscriber Only, Strategy, Management /

Evergreen Consulting CEO Brent Grover recently interviewed Andrew E. Randall, president of TriState Capital Ohio, Cleveland, OH, about distributor relationships with bankers in a tough climate, where credit markets are tight, and financial institutions have become cautious and conservative.
 
Randall says this environment may continue for another 12 months or so but will create opportunities for banks not affected by current economic challenges to look at well-structured and well-priced opportunities. Randall offered up a recent transaction as an example: a senior debt financing for an acquisition by Supply Chain Equity Partners, a private equity group based in Cleveland, OH, with an exclusive focus on wholesaler-distributors. The transaction typified the type of borrower ...

Growing in a Difficult Banking Climate Read More »

Commentary: Focusing on Profitability in a Time of Strained Sales Growth

Leave a Comment / Free, Perspective, Strategy, Management, Subscriber Only /

When I started as editor of MDM in 2005, I was consistently writing news articles each quarter on double-digit sales increases. It's no surprise, given current economic conditions and financial market turmoil, that double-digit growth has been a rarity in recent quarters.
 
Most distributors focused on North American markets are recording single-digit growth. Those focused solely on construction-related markets have recorded steep declines and net losses -a fundamental change. Manufacturers with business abroad have seen double-digit growth, but when they break it down, North American sales are low single digits, flat or negative. As a result, many distributors and manufacturers are focusing on profitability.
 
As we wrote recently in MDM, distributors should make up ...

Commentary: Focusing on Profitability in a Time of Strained Sales Growth Read More »

Applied Industrial: Fluid Power a Growth Area for Distributor

Leave a Comment / Top Distributor Sectors, Subscriber Only, Power Transmission/Motion Control/Fluid Power, Mergers & Acquisitions, Finance, Companies /

Applied Industrial Technologies, Cleveland, OH, has made one of its largest acquisitions in the U.S. fluid power market with an agreement to buy seven distribution businesses from Fluid Power Resource LLC.
 
The purchase fits with Applied's strategy to continue building out its fluid power unit, according to Warren E. Bud"Hoffner, who oversees Applied's fluid power group.
 
"It's just a great fit for Applied, and we've always thought that,"Hoffner told MDM. "FPR ran these companies as standalone firms in each local or regional market. That fits very well with how we're structured."
 
The last large acquisition Applied made in the U.S. fluid power market was Spencer Industries Inc., Kent, WA, a regional fluid power distributor with about $65 million in ...

Applied Industrial: Fluid Power a Growth Area for Distributor Read More »

MDM News Digest 3814

Leave a Comment / Subscriber Only, Free /

Chicago, IL-based Grainger reported sales of $1.8 billion for the second quarter ended June 30, 2008, up 10 percent over the second quarter 2007. Profit increased 8 percent to $113 million. More
 
The Fastenal Company, Winona, MN, reported sales for second quarter ended June 30, 2008, were $604.2 million, up 16.3 percent over the prior-year period. Profit was up 26.4 percent. Sales for the first six months were up 16 percent from the first six months of 2007. Profit was up 26.2 percent. More

UK-based Wolseley plc, distributor of plumbing and heating products to professional contractors and supplier of '

MDM News Digest 3814 Read More »

Inflation by Commodity Group: Second Quarter 2008

Leave a Comment / Subscriber Only /

These select product groups provide a snapshot of inflation trends based on the Producer Price Index from the U.S. Bureau of Labor Statistics. Second quarter 2008 is compared with second quarter 2007, and first quarter 2008 with second quarter 2008. Graphics depict trend for that product from the start of 2007.
 
The product groups in this report:  

Inflation by Commodity Group: Second Quarter 2008 Read More »

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.