QuickTake: Fix Your Biggest Critical Constraint for 2024 Growth - Modern Distribution Management

Log In

QuickTake: Fix Your Biggest Critical Constraint for 2024 Growth

It’s strategy season, and even optimistic predictions are for flattish 2024 industry growth. Mike Marks & Tom Gale discuss the bottom-line impact in dealing with whatever your big gorilla(s) looks like.
MDM QuickTake Teeing Up (1)

Teeing up for 2024, which many in the distribution industry don’t envision being a revenue growth year, will require executives to make some tactical decisions.

During an episode of MDM’s QuickTake Podcast, Mike Marks, founding partner of Indian River Consulting Group, breaks down some strategies and bit-sized tactics wholesale distribution executives can take in order to enter 2024 in the best position possible. 

He says the strategies and tactics fall into categories: offensive and defensive. Below are three of the tactics Marks discusses. Check out the podcast in the media player above for more details, including specific sales tactics and consulting techniques. 

3 Defensive Strategies to Tee Up for 2024

1. Watch Your Cash.
“Tactically make sure that you’re doing 100% of all your available stock rotations with your suppliers,” Marks said. “We’ve had a period of growth and people have been buying and changing to different suppliers. This is a good time to review accounts receivable and selectively tighten it up.”

He also suggests that chief financial officers should be examining the company’s debt capacity and renegotiating debt and credit lines while numbers are good.

2. Review Inventory Replenishment.
Marks suggests reviewing the Top 5 suppliers, which make up a good portion of a company’s revenue, and identifying the safety stock and reorder rates. And then get 80-90% of those reorders done automatically.

“If a distributor has had issues with stocking what they sell, instead of selling what they stock, and they have this long tail of inventory and a bunch of working capital tied up… one of the things to get the salespeople going — and this is only if it’s severe — is reduce the commission rate on special orders and nonstock,” Mark shares.

3. Reduce Expenses.
By comparing current business expenses to a time when the business was smaller, but operating well, you can identify added costs that have crept into the business, but may not still be necessary to operations as they were at the time of growth.

“The whole idea is that if you get set up — your cost structures right and your balance sheets a little bit stronger — you’ll have fewer surprises,” Marks explains. “If you do some of that stuff, and not all of it, every company is different, then you can think about going on the offense.”

Listen to the full conversation via the audio player above, and find the full library of episodes on the MDM Podcasts page.

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!


articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events



You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

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.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.