MDM News Digest 4717
News briefs from August 26 - September 10, 2017
September 10, 2017
Grainger’s Pricing Initiative, pt 2: The Quest for Optimization
Since the January launch of its pricing initiative, Grainger has seen significant declines in profitability. While this margin trend is expected to reverse in 2019, its existence may signal that the pricing process Grainger is pursuing is less than optimal. This article, part 2 in a series, analyzes the challenges Grainger faces in implementing its pricing approach and provides additional lessons for other distributors looking to improve their pricing strategies.
This article includes:
- What we know to be true
- Are Grainger’s web prices more optimal?
- Did Grainger miss the boat?
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3 Lessons for Midsize Distributors
What can other B2B distributors learn from watching Grainger’s pricing story unfold? Three tips for distributors.
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- Distribution M&A Playbook, pt. 2: The 8 Fatal Flaws in M&A
- Top Trends for 2017
- MDM Interview: Watsco Aims for ‘Bigger, Better, Faster’
Commentary: Harvey’s Stark Reminder on Disaster Planning
As Hurricane Harvey shuttered ports and distribution centers at the end of August (and at press time, Hurricane Irma was poised to hit Caribbean islands hard with Florida in its potential path), the deluge that inundated Houston and surrounding area served as a stark reminder that all companies would be wise to develop an emergency plan in case of disaster.
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Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:
- Distribution M&A Playbook, pt. 2: The 8 Fatal Flaws in M&A
- Top Trends for 2017
- MDM Interview: Watsco Aims for ‘Bigger, Better, Faster’
Distribution M&A Playbook, pt. 3: Integration Best Practices
Many distribution verticals are seeing consolidation; those that haven’t are ripe for it. This article, the final in a three-part series, will help buyers plan an effective integration of a newly acquired business. Part 1 of this series discussed how distributors can prepare for the inevitable by understanding the landscape, their place in the consolidation cycle and the new measures of shareholder value. Part 2 examined the eight fatal flaws in acquisitions that destroy shareholder value.
This article includes:
- How the starting point defines the path forward
- Why distributors are different
- Best practices in action
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This article is available for purchase as a special report.
Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:
- MDM-Baird Distribution Survey: ‘Good, Not Great’
- Top Trends for 2017
- Commentary: What are you doing to make distribution ‘sexy?’
Market Snapshot: Market Demand for Bearings
The MDM Market Snapshot, based on data from MDM Analytics, includes market demand for Bearings in the U.S., plus the top end users by 6-digit NAICS.
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Not a subscriber? Subscribe below or learn more. Subscribers also have access to the following related articles:
- Use Tech to Work Smarter, Not Harder
- Market Snapshot: Cutting Tools Market Demand in the U.S.
- MDM Pricing Trends Report: Fourth Quarter 2016
Download this Issue in PDF: September 10, 2017
This is the PDF of this issue of Modern Distribution Management.
Table of Contents:
- Grainger’s Pricing Initiative, pt 2: The Quest for Optimization
- 3 Lessons for Midsize Distributors
- Commentary: Harvey’s Stark Reminder on Disaster Planning
- Distribution M&A Playbook, pt. 3: Integration Best Practices
- Market Snapshot: Market Demand for Bearings
- MDM News Digest 4717
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