November 2021 was a busy month on the M&A front for multiple companies, including Brady IFS, Graybar and US LBM, all of which struck more than one deal during the month. The M&A activity continued an upward trend from October, as well as this year’s third quarter. (See MDM’s 3Q 2021 M&A report for a […]
Category: Featured Blog
Wholesale Distribution Revenue Growth Rate Ticks Upward
The anticipated revenue growth rate for U.S. wholesale distributors in 2021 ticked up slightly in November based on 10 months of data, rising from the 20.8% October forecast to 21.3%, according to the latest monthly industry forecast produced exclusively for MDM by the University of Colorado Boulder Leeds School of Business. The 2022 forecast also […]
The Amazon Effect: Must Distributors Keep Up?
Few doubt whether Amazon’s fast and free delivery options have impacted the retail, distribution and shipping industries. But some are still debating whether a Prime-like delivery model will translate to B2B e-commerce, and whether such a model is truly necessary. Whether or not distributors need to offer next-day delivery, B2B customers do expect the option […]
Why Digital Transformation Fails: Lack of Communication
Digital transformation seems to be a silver bullet. While it is necessary for success, it doesn’t guarantee success for distributors. Companies don’t always manage change effectively when they modify their business with technology. If they don’t introduce digital tools to their organization with effective communication, their odds of success with digital transformation plummet. What is […]
New Practices in a Pandemic Recruiting Battle
There is a war on top talent, and distributors need to arm themselves with a different set of tools to be successful, according to John Salvadore, managing partner at Global Recruiters Network-Coastal (GRN Coastal), a search firm specializing in distribution and manufacturing. “In the past, it was always the company looking at the candidate and […]
New Ways of Thinking About P2P Automation
As the distribution industry continues to wrestle with supply chain headaches, companies that embrace new ways of thinking about P2P automation can improve efficiency and grow their bottom line, said Cindy Dobson, P2P sales leader for Esker. “No matter which end of the spectrum that your business is on, supply chain leaders are forced to […]
4 Types of Distributors We’ll See in 2022
Distributors have experienced market disruptions, uncertainty, new coronavirus variants and constraints none of us could have forecasted over the last year or so. We can no longer rely on how we have always done business. A recent McKinsey study indicates more than 60% of CEOs restructured their organization in response to the pandemic and many […]
Expect Pricing Pressures to Remain High into 2022
Inflation data released by the Bureau of Labor Statistics this week was even higher than many analysts anticipated, with pricing rising 6.2% in October compared to last year. It’s the largest annual increase in nearly three decades. Distributors have been feeling the pinch of inflationary pressures throughout the pandemic and expect pricing pressures to remain […]
Curbell Plastics’ Award-Winning Training and Development Techniques
While many distributors proclaim that training and development techniques are the backbone of their organization, those learning initiatives can often slip through the fingers of well-meaning industry professionals. It might be time to ditch the “one-size-fits-all” approach in favor of more targeted, goals-based training for employees, said Jinny Kcehowski, associate director of training and development […]
Gustave A. Larson Charts a Course for Sales Transformation
When Matt Wisniewski joined Gustave A. Larson Company three years ago, the distributor had many outside sales employees. After implementing an “inside-out” sales transformation, the number reduced by 80%. While Larson culled a large number of its outside salespeople during the move to an integrated sales model, it has picked up additional employees across new […]
The Sales Infrastructure That Adapts to Changing Demands
Agile manufacturing is a well-understood concept that allows companies to compete more efficiently by adapting quickly to changing customer and market needs. Just as you have to compartmentalize and adapt production processes for agile manufacturing, distributors can create a compartmentalized sales infrastructure that adapts to changing demands. When you consider how complex and fragmented industries […]
October M&A Roundup: Blockbuster Electrical Deal Highlights Busy Month
The electrical sector saw a major shakeup last month with Rexel’s $456 million of Mayer Electric, but that wasn’t the only deal to turn heads in October. During the period, more than a few Top Distributors made market-shifting moves, including Core & Main, Kaman Distribution, SRS Distribution, US LBM Holdings and Winsupply. Steady activity has […]
Why Key Account Programs Need Constant Measurement
Key Accounts are a sizable and important segment for most mid-sized and larger distributors. While the exact definition of key accounts differs depending on the distributor, we’ll define key accounts as large volume customers with multiple locations (e.g., branches, dealerships) that span multiple sales territories or regions. Key accounts often involve multiple buyers and influencers […]
Electric, Block Chain, AI Will Reshape Distribution Quickly
There’s a maelstrom of emerging technologies and services for distributors to monitor, according to Simon Anderson. In particular, electric, block chain and AI will reshape distribution, and quickly. Anderson, a self-described futurist, last week delivered the keynote address during the Power Transmission Distributors Association’s 2021 Industry Summit in Atlanta. As a futurist, Anderson said he […]
Electric, Blockchain, AI Will Reshape Distribution Quickly
There’s a maelstrom of emerging technologies and services for distributors to monitor, according to Simon Anderson. In particular, electric, blockchain and AI will reshape distribution, and quickly. Anderson, a self-described futurist, last week delivered the keynote address during the Power Transmission Distributors Association’s 2021 Industry Summit in Atlanta. As a futurist, Anderson said he looks […]
4 Keys To Better Hiring Shift Workers In Distribution
The way we think about work has altered dramatically due to the ongoing COVID-19 pandemic. The shift employees occupying employment in distribution industries, hospitality and healthcare were hit the hardest. However, there are simple keys to better hiring shift workers in distribution. Businesses around the world, particularly wholesale distribution companies, rely heavily on shift employees. […]
Is E-Commerce Data More Important than Products?
When you think about big technology mergers and acquisitions, it’s unlikely you’ll think about distributors getting in the mix. Yet earlier this summer, that’s exactly what happened when B&D Industrial acquired GTI Predictive Technology, an internet-of-things company that conducts vibration analysis. The promise of the IoT is that by connecting tools and appliances to the […]
FleetPride Launches Enhanced E-Commerce Solutions
While the distribution sector may lag behind other industries when it comes to enhanced e-commerce solutions, companies that employ digital, customer-focused parts-and-service options stand to thrive during a sometimes-chaotic era for the distribution industry, executives from FleetPride said during a recent webcast. “I’ve been in the business a long time, and right now the pace […]
Keys to Adopting a Customer-Centric Distribution Sales Strategy
Market research shows that business-to-business selling continues to evolve and the purchasing journey has changed drastically in recent years, hence the need for a customer-centric distribution sales strategy. B2B buyers are smarter and understand more about their procurement needs than ever before, requiring sellers to be more agile and adaptable to meet their needs. Research […]
Motion President Breaux: Transparency and Honesty Matter Most for Employees
There has been an abundance of lessons learned by distributors ever since the pandemic hit last year, but Motion President Randy Breaux says some of the biggest include a better human touch with employees and a continued focus on customers. “It has been a challenging past 18 months, and I think the last few months […]
