Day: May 10, 2013

Download this Issue in PDF: May 10, 2013

This is the PDF of this issue of Modern Distribution Management.

Table of Contents:

  • The 'New' Distribution Company: How New Market Entrants Are Challenging the Traditional Distribution Model
  • Commentary: How Do You Define & Measure Value?
  • Wind Markets Grow, but Challenges Remain
  • From Sales-Driven to Customer Drive: How To Create Authentic Customer Value for Long-Term Profitability
  • MDM Industrial Inflation Index: March 2013

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From Sales-Driven to Customer-Driven

Author Steve Deist argues that distributors need to move beyond a sales-driven strategy and dig into what customers really want. Distributors can use that knowledge as the seed for a market-driven strategy that will result in long-term profitability.

Deist is a partner with Indian River Consulting Group. Learn more at

Most distributors are sales-driven companies – and proud of it. They are highly responsive to the needs of their various customers, and they rely heavily on long-term personal rep relationships. But while being sales-driven is certainly commendable, it is no longer enough.

A well-run sales-driven company can react quickly, but is unlikely to get ahead of changing customer requirements. A distributor that relies on its sales force as the primary window to its customers will always be challenged to create competitive differentiation. Sales reps are often too emotionally and financially...

Wind Market Grows; Challenges Remain

State renewable energy standards, driven by environmental and economic factors, have created a larger market for wind energy in the U.S. Federal and local incentives, combined with improved efficiencies and reduced costs, have supported the industry development needed to meet this demand. MDM spoke with wind association leaders, distributors and manufacturers to learn more about what’s driving wind energy development in the U.S. – and what’s holding it back.

This article is the third in a series examining the current state of the alternative energy market in the U.S.

In 2012, the U.S. regained the No. 1 rank for installed wind energy capacity among global wind markets for the first time since 2009, according to the Global Wind Energy Council’s Annual Market Update.

The ‘New’ Distribution Company

New companies competing in the distribution industry are proving that there’s still room in the market for entrepreneurs. Through technology improvements and increased sources of supply, some have even been able to grow without big investments in inventory and physical locations. This article features new distributors, including a private equity-backed platform, distributors focused on niche markets, online-only businesses and a distributor that restarted his business after selling to a consolidator.

This is the final article in MDM’s Shifting Competitive Landscape Series. Get the full report in the MDM Store or subscribe today.

Consolidation and aggressive expansion over the past few decades in wholesale distribution channels have resulted in tougher competition for the local independent from regional, national and even international distributors.

But a growing number of new companies are finding success, bringing a flexible business model and a fresh perspective on what it takes to compete in today’s wholesale distribution markets. Some distributors ...