September 10 2010
Volume 40, Issue 17
40
17
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To learn more about the mechanics of undertaking a hostile takeover bid, MDM spoke with Jim Hill, executive chairman of Ohio-based Benesch and chairman of the law firm’s private equity practice. Hill provided background on the topic, examples of other deals, and the challenges inherent with this approach.
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For those engaged in independent distribution channels 20 years ago, there was much discussion about how the channel had to tighten up to remain a viable part of the supply chain. Too many redundant activities were taking place at the manufacturer and distributor levels, and customers would migrate to more cost-effective supply sources if their current suppliers did not find ways to be more competitive. Oh, and distributor margins were going to have to squeeze to pay for this improvement.
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By formalizing a process for increased communication and partnership, Distributor Advisory Councils are one way some manufacturers have strengthened their relationships with distributors.
Welding, cutting and safety products manufacturer Thermadyne for example started a distributor advisory council in 2005 to move from informal ad hoc meetings to a more formalized process for getting distributor feedback on markets, products and policies. Thermadyne’s advisory council meets twice a year, but other manufacturers’ councils may just meet once a year. Most have more informal contact throughout the year through teleconferences or email.
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Distributors have to balance a number of factors when designing incentive plans for their sales force. Among them: perceived fairness, sales goals, accountability and cost.
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These charts show the top ten industries, by SIC code, consuming these products; and the 2009 end-user consumption of these groups sorted by the nine government market regions.
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To learn more about the mechanics of undertaking a hostile takeover bid, MDM spoke with Jim Hill, executive chairman of Ohio-based Benesch and chairman of the law firm’s private equity practice. Hill provided background on the topic, examples of other deals, and the challenges inherent with this approach.
- Premium
For those engaged in independent distribution channels 20 years ago, there was much discussion about how the channel had to tighten up to remain a viable part of the supply chain. Too many redundant activities were taking place at the manufacturer and distributor levels, and customers would migrate to more cost-effective supply sources if their current suppliers did not find ways to be more competitive. Oh, and distributor margins were going to have to squeeze to pay for this improvement.
- Premium
By formalizing a process for increased communication and partnership, Distributor Advisory Councils are one way some manufacturers have strengthened their relationships with distributors.
Welding, cutting and safety products manufacturer Thermadyne for example started a distributor advisory council in 2005 to move from informal ad hoc meetings to a more formalized process for getting distributor feedback on markets, products and policies. Thermadyne’s advisory council meets twice a year, but other manufacturers’ councils may just meet once a year. Most have more informal contact throughout the year through teleconferences or email.
- Premium
Distributors have to balance a number of factors when designing incentive plans for their sales force. Among them: perceived fairness, sales goals, accountability and cost.
- Premium
These charts show the top ten industries, by SIC code, consuming these products; and the 2009 end-user consumption of these groups sorted by the nine government market regions.
