Business Strategy

Distributors who are thriving – and there are many -- in today’s digitally driven market are those who play to win and not to lose. But adopting a winning strategy doesn’t mean throwing money at a bigger sales team or at new technology.

Digital transformation. Consolidation. Growing concerns over manufacturers’ going direct. With all the shiny objects in front of distributors right now, it’s easy to ignore (and not plan for) the next big thing: the next recession.

Students of history recognize that there are two things we know about the economy. One is that cycles of growth and recession are inevitable. The second is that we rarely see the downturn coming, and we can’t always rely on economic indicators to warn us.

A strong economy has provided distributors with more investment capital in 2018 than they've seen in over a decade. Even small, independent distributors are making investments, adding ecommerce and other technologies to reduce their cost to serve, create frictionless buying experiences and strengthen their value proposition. The most successful investments will be based on long-term goals. 

A lot of distributors have been operating in an echo chamber without realizing it. Distributors in an echo chamber don't measure anything, so they don't understand what's working and what isn't. They also focus a lot on the day-to-day minutia without seeing the big picture.

Most distributors are offering customers things they really don't want or need.

Leverage human resources - not just technology - to bridge the gap between raw data and actionable insights.

Are you ignoring customers that have bought from you once and never came back? You may be missing out.

There's nothing wrong with a "lifestyle" approach to management... unless you want your business to grow beyond your own contributions.

Specialized sales roles are more efficient and effective, as the medical industry well knows.

Loyal customers will give reps the opportunity to fix problems when they arise.

In the wake of Amazon's announcement that it will offer a Prime option with unlimited free two-day shipping to Amazon Business customers, some distributors may react impulsively, which can lead to poor decisions.

The lighting distribution market is rife with change. In a recent interview with LightED Magazine, Indian River Consulting Group's Mike Marks called the market “the wild, wild west.” Read Welcome To The Wild, Wild West! in LightED Magazine for Marks' take on who the winners will be in this "frothy" market.

Company CEOs and board members are facing increasing financial accountability for the success of M&A deals, according to a 2017 survey by PWC of Fortune 1,000 executives and senior management recently active in M&A. Are you responsible for an upcoming deal? Early planning can increase the odds of successfully creating value and meeting deal goals.

Charley Hale, former CEO of industrial distributor FCX Performance, will be the keynote speaker at the Distribution M&A Executive Workshop, to be held Oct. 9-11, 2017, in Austin, Texas.