The foundational elements of the distribution model – customer intimacy and operational excellence – are still important and should not be abandoned, but focusing on being more adaptive is crucial for distributors that want to gain a competitive advantage in today’s market, an issue raised in 2016 Distribution Remodel: How to Build a Better Business.

Traditionally, distributors tend to ride the cycle up in good times and hang on as they ride it down in the bad times. However, to differentiate from the competition, they should focus on building their businesses on the way down to improve conditions on the ride up through investing in talent, technology and infrastructure, rather than just trying to survive the drop.

Successful distributors will change their models to address changing needs rather than just holding onto the idea that the old model has “always worked.”

Read more about the importance of an adaptive business model in 2016 Distribution Remodel: How to Build a Better Business.