Foodservice distributors turn to retail to keep going | J. Polep to be combined with other distributors | Jeld-Wen halts business at select manufacturing facilities
Major distributors Sysco and US Foods are switching gears and selling to retailers amid the pandemic that has forced so many restaurant dining rooms to close and stalled other foodservice channels. Smaller and niche suppliers are also exploring alternative channels, such as selling directly to consumers via Instagram.
J. Polep Distribution Services, Harold Levinson Associates and Allen Brothers Wholesale Distributors are combining to become National Convenience Distributors. The combined company is owned by a private equity fund.
Distribution revenues fell 23.5% last week compared to the same period in 2019, according to Indian River Consulting Group. The rate of decline is expected to continue due to reduced customer demand and rising unemployment claims.
Distributors can win over customers by highlighting their dependability even during crisis, writes Proton.ai founder Benj Cohen. Companies can also use this time to digitally transform and integrate artificial intelligence into their sales strategies.
The coronavirus outbreak has forced sales organizations to adapt while implementing social distancing, but has also served as a reminder that successful selling is about sticking to the fundamentals, David Brock writes. Amid a time of crisis, "the basic principles of great leadership, great selling, creating value with our people and our customers, come to the forefront of 'what works,'" Brock writes.
Boards need to be ready to deal with the fallout of the coronavirus, including holding effective virtual meetings and being ready to act should executives be incapacitated by illness. "If a leader gets sick on one team, then we have a second team that is already up and running," says Jan Babiak, a board member for Walgreens Boots Alliance and the Bank of Montreal.
In his new post, NAW Institute for Distribution Excellence Fellow and Author Mark Dancer writes: "Distributors may avoid outsider disruption by being human, but only if they make concrete plans to work with customers where they live and work -- in communities. A new mindset is required. Segmenting customers is about selling. Serving communities is about collaborating. Relationships are built on trust, and at its core, building trust is a very human endeavor." Read his post.
In this November 2019 webinar sponsored by PROS, Innovate to Dominate author Mark Dancer discussed ways that distributors can lead in this age of B2B innovation to defeat disruption and reinvigorate our business economy through digital transformation. Joining Mark for a distributor’s perspective was Mike DeCata, President and CEO of Lawson Products. Replay the webinar here for big ideas and major takeaways for your business.