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Commentary: Enabling Profitable Growth

March 25, 2005

Of the various trends within the wholesale distribution industry, distributor consolidation may the one driving the greatest need for enabling enterprise technology.

The consolidation trend within the wholesale distribution industry is continuing. Many distributors have moved out of the business survival mode by executing growth strategies through acquisitions. In fact, a recent study shows that 24 percent of distributors are actively looking to expand their business through acquisition.

This strategy allows distributors to increase revenue by expanding into new geographic areas and/or broadening their product offerings. Some of the challenges associated with this strategy include determining how to appropriately leverage the new larger economy of scale, ...

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