The 2020 Mid-Year Economic Update_long

April 25 2007

Volume 37, Issue 8 - 04/25/2007

Volume:

37

Issue:

8

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Features
This article is available to non-subscribers through online access below, or by purchasing the series, Changing Channels, in the MDM Store.

As reported in Part 1, tension between manufacturers and distributors has always been there -but the reasons for that tension have changed. Channel partners are navigating a new frontier that includes private-label branding, converging channels, pricing conflicts, the push of big-box retailers and national accounts into their back yards, and a changing customer base. In Part 2 of this article, we address best practices in manufacturer-distributor relationships.

One answer to manufacturer-distributor conflicts, MDM found in interviews for this article, is that distributors must focus on creating value for the customer and the supplier by homing in on core competencies. And manufacturers must find a balance of trade between high-volume distributors, integrated ...


These 16 select product groups provide a snapshot of inflation trends. First quarter 2006 is compared with first quarter 2007, and the fourth quarter 2006 with the first quarter 2007.

Metals & Metal Products
Plumbing Fixtures & Fittings
Fasteners
Hardware
Hand & Edge Tools

Chemicals & Allied Products
Adhesives & Sealants
Industrial Gases

Machinery & Equipment
Mechanical Power Transmission Equipment
Pumps, Compressors & Equipment
Electrical Machinery & Equipment
Ball and Roller Bearings
Metal Valves, Except Fluid Power
Industrial Material Handling Equipment
Fluid Power Equipment
Welding Machines & Equipment
Cutting ...

Thirteen sales agents for Lawson Products, Des Plaines, IL, have been indicted on federal fraud charges. The sales agents are accused of paying kickbacks totaling $140,000 to employees of some of their customers, including suburban municipalities, school districts, a federal agency, a non-profit organization and private businesses.


They disguised kickbacks as purchasing incentives, according to the Chicago U.S. Attorney's office. In return, the sales agents allegedly obtained higher sales commissions based on greater volume and prices.


Eleven of the defendants were charged in six separate cases in Chicago, while two additional cases were filed in Dayton, OH, and Philadelphia, PA. All of the cases involve commissioned sales agents for Lawson Products, Inc., or its ...

Channel dynamics, as our lead article explores, have arguably never been more complex or more fluid. One of the core concepts as this article came together was the need to have a clear line of visibility from manufacturer to end-user customer. With so many variables at play, visibility seems to be one of the few constants.


Channel conflict appears when clarity disappears, whether in communication, policies, discount structures or behaviors. There is no right answer, yet there are great examples of consistent and clear approaches that are working.


Ten years ago, the hot issue was how integrated supply was radically altering traditional channel relationships. Power was shifting to the customer. The redundancies and inefficiencies of traditional channels were ripe for ...
Paris-based electrical distributor Rexel Inc. reported sales of 2.576 million euro (US$3.509 billion) in the first quarter 2007, up 31 percent from the same period last year. Growth was 5.9 percent on a comparable basis. Rexel saw double-digit organic growth in Europe and Asia-Pacific, with flat sales in North America. Acquisitions added 545 million euro (US$742 million) in sales in 2006. More ...

Grainger, Chicago, IL, reported sales of $1.5 billion in the first quarter, up 9 percent from the first quarter 2006. Profit increased 18 percent to $102 million. Daily sales increased 8 percent in January, 10 percent in February and 9 percent in March. Sales in the branch-based segment in the U.S., Mexico and ...

Modern Distribution Management's March Inflation Index, which measures a cross-section of industrial supplies, was up 0.07% from the previous month, and up 2.88% from March 2006.


Summary of&nbsp ; MDM Inflation Index for the past 12 months:


March 2007 Index 269.6
February 2007 Index 269.4
January 2007 Index 268.7
December 2006 Index&nbsp ; 267.1
November 2006 Index 266.5
October 2006 Index 265.9
September 2006 Index 265.6
August 2006 Index 265.2
July 2006 Index 264.0
June 2006 Index 263.0
May 2006 Index 262.1
April 2006 Index 262.1
March 2006 Index 262.1


Please click below to view a print-ready pdf of the&nbsp ; MDM Inflation Index for March 2007, listing the ten individual product categories ...

This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost toward an annual subscription (within 30 days of purchase), which includes two issues a month plus access to more than six years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to ...
PDF Download
This article is available to non-subscribers through online access below, or by purchasing the series, Changing Channels, in the MDM Store.

As reported in Part 1, tension between manufacturers and distributors has always been there -but the reasons for that tension have changed. Channel partners are navigating a new frontier that includes private-label branding, converging channels, pricing conflicts, the push of big-box retailers and national accounts into their back yards, and a changing customer base. In Part 2 of this article, we address best practices in manufacturer-distributor relationships.

One answer to manufacturer-distributor conflicts, MDM found in interviews for this article, is that distributors must focus on creating value for the customer and the supplier by homing in on core competencies. And manufacturers must find a balance of trade between high-volume distributors, integrated ...


These 16 select product groups provide a snapshot of inflation trends. First quarter 2006 is compared with first quarter 2007, and the fourth quarter 2006 with the first quarter 2007.

Metals & Metal Products
Plumbing Fixtures & Fittings
Fasteners
Hardware
Hand & Edge Tools

Chemicals & Allied Products
Adhesives & Sealants
Industrial Gases

Machinery & Equipment
Mechanical Power Transmission Equipment
Pumps, Compressors & Equipment
Electrical Machinery & Equipment
Ball and Roller Bearings
Metal Valves, Except Fluid Power
Industrial Material Handling Equipment
Fluid Power Equipment
Welding Machines & Equipment
Cutting ...

Thirteen sales agents for Lawson Products, Des Plaines, IL, have been indicted on federal fraud charges. The sales agents are accused of paying kickbacks totaling $140,000 to employees of some of their customers, including suburban municipalities, school districts, a federal agency, a non-profit organization and private businesses.


They disguised kickbacks as purchasing incentives, according to the Chicago U.S. Attorney's office. In return, the sales agents allegedly obtained higher sales commissions based on greater volume and prices.


Eleven of the defendants were charged in six separate cases in Chicago, while two additional cases were filed in Dayton, OH, and Philadelphia, PA. All of the cases involve commissioned sales agents for Lawson Products, Inc., or its ...

Channel dynamics, as our lead article explores, have arguably never been more complex or more fluid. One of the core concepts as this article came together was the need to have a clear line of visibility from manufacturer to end-user customer. With so many variables at play, visibility seems to be one of the few constants.


Channel conflict appears when clarity disappears, whether in communication, policies, discount structures or behaviors. There is no right answer, yet there are great examples of consistent and clear approaches that are working.


Ten years ago, the hot issue was how integrated supply was radically altering traditional channel relationships. Power was shifting to the customer. The redundancies and inefficiencies of traditional channels were ripe for ...
Paris-based electrical distributor Rexel Inc. reported sales of 2.576 million euro (US$3.509 billion) in the first quarter 2007, up 31 percent from the same period last year. Growth was 5.9 percent on a comparable basis. Rexel saw double-digit organic growth in Europe and Asia-Pacific, with flat sales in North America. Acquisitions added 545 million euro (US$742 million) in sales in 2006. More ...

Grainger, Chicago, IL, reported sales of $1.5 billion in the first quarter, up 9 percent from the first quarter 2006. Profit increased 18 percent to $102 million. Daily sales increased 8 percent in January, 10 percent in February and 9 percent in March. Sales in the branch-based segment in the U.S., Mexico and ...

Modern Distribution Management's March Inflation Index, which measures a cross-section of industrial supplies, was up 0.07% from the previous month, and up 2.88% from March 2006.


Summary of&nbsp ; MDM Inflation Index for the past 12 months:


March 2007 Index 269.6
February 2007 Index 269.4
January 2007 Index 268.7
December 2006 Index&nbsp ; 267.1
November 2006 Index 266.5
October 2006 Index 265.9
September 2006 Index 265.6
August 2006 Index 265.2
July 2006 Index 264.0
June 2006 Index 263.0
May 2006 Index 262.1
April 2006 Index 262.1
March 2006 Index 262.1


Please click below to view a print-ready pdf of the&nbsp ; MDM Inflation Index for March 2007, listing the ten individual product categories ...

This is the pdf of this issue of Modern Distribution Management. Apply the full $24.95 pay-per-view cost toward an annual subscription (within 30 days of purchase), which includes two issues a month plus access to more than six years of online archives and market data. Call 1-888-742-5060 or email info@mdm.com to ...
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