Move Beyond Reaction to Remain Relevant - Modern Distribution Management

Log In

Move Beyond Reaction to Remain Relevant

New competition, changing markets drive need for innovation in distribution and manufacturing.
jenel-white
Author
Date

A central driver of the distribution industry has been reaction – a need to adapt to things that have already changed. But if distributors want to remain relevant for the long term, they need to start thinking beyond "three, four, even 10 years from now," according to participants in the Industry Leaders panel at the Association for Hose and Accessories Distribution annual convention in Colorado Springs earlier this month. They need to become proactive.

The markets industrial distributors sell into have fundamentally changed. Steel is no longer a primary industry for many hose distributors, for example, said Don Fritzinger, president, RW Connection Inc., Landiville, PA. "Things cycle."

Are you actively looking for new applications for your products? Are you developing new services in order to make it easier for your customers to do business (and in turn, making yourself more invaluable to them)?

Your competitors have also changed.

"We've been in a solution-based space for quite some time," said Jeffrey Scheininger, president, Flexline, Kenilworth, NJ. "But now we're competing with web-based sellers who can operate in an extended 'profit-free' space."

And it's not just big players nibbling at the market share of traditional distributors, according to Tom Paff, president, Campbell Fittings Inc., Boyertown, PA.

"Scale does not deter the entrepreneurs from going after markets," he said, pointing to the impact Tesla and Uber have had on the automotive industry.

Technology – especially the web – has "given power to the customer and opened the door for smaller organizations," said Andreas Gerstenberger, head of BU Industrial Fluid System at Continental Contitech, Fairlawn, OH. "…We need to be willing to assess and adjust – and to give up some things" that are ingrained in our current thought processes and operations.

"If we don't diversify, we have a problem," he said.

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!

2

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

1

article
left

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.